Saks tries price points for new customers

NEW YORK (Reuters) - High-end retailer Saks Inc. (SKS.N: Quote, Profile, Research, Stock Buzz) is looking to lure new customers by offering different price points and using local marketing to raise awareness of its brand, Chairman and Chief Executive Steve Sadove said on Wednesday.

"The luxury segment clearly has legs and is continuing to perform exceptionally well," Sadove said at the Reuters Consumer and Retail Summit in New York.

Saks has posted strong sales at stores open at least a year since selling off Parisian and other mid-tier department store chains in 2005 and 2006, but still has a lot of work to do to narrow a productivity gap with rivals such as Neiman Marcus, Sadove said.

"There's an enormous amount of work that needs to be done, and building the customer base is part of it," Sadove said.

Sadove also said the retailer, which operates Saks Fifth Avenue and Off 5th outlet stores, was looking at different marketing partnerships and boosting its international presence to raise consumer awareness.

"Having different kinds of relationships to build the equity of Saks is exactly what we want to do -- whether it's partnering with networks, or cable, or the theater or sports," Sadove said.

With the sale of the mid-tier chains, Saks is narrowing its focus on the wealthy customer. Sadove said the average Saks customer earns $200,000 or more, and craves brands such as Fendi or Chanel.

But Sadove said Saks has brought more balance by stocking goods with good, better and best price points in luxury.

"Our low end would probably be a high end of a Nordstrom and Bloomingdale's," Sadove said.

He said that Saks, which has some licensed international stores, was looking at "a number of international markets," but wouldn't name specifics. He also said there were a few U.S. markets where a new Saks Fifth Avenue store would work, but added the company was currently focusing on renovating stores to boost sales.