Fashion Feuds

Luxury for Less

  • Why it matters

    Why it matters

    The premium fashion retail sector in Germany is shrinking. The introduction of Saks Off 5th will pressure direct competitors to react, a boon for consumers.

  • Facts

    Facts

    • Hachmeister + Partner estimate the premium fashion retail segment in Germany at €7.9 billion ($8.9 billion).
    • This segment is worth about €200 million ($225.3 million) in Düsseldorf alone.
    • TK Maxx already operates 112 retail stores in Germany.
  • Audio

    Audio

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83289409 dpa saks off 5th duesseldorf big
Saks Off 5th's first entry to the European market is a foothold in the Düsseldorf luxury shopping scene. Source: Ina Fassbender / dpa

In the fashionable city of Düsseldorf, premium brands such as Dolce & Gabbana, Fendi and Versace are common sights. But the signs in the window of Saks Off 5th advertising discounts of up to 60 percent on them are shocking in the world of German retail.

With the domestic launch of the Saks Off 5th outlet chain, which sells last season’s luxury styles at discount prices, the Hudson’s Bay Company (HBC) is turning Germany’s retail branch on its head. “Our combination of coveted brands at great prices is something the German market does not have yet,” said Wayne Drummond, head of Saks Off 5th in Europe in an interview with Handelsblatt. And the executive made an unmistakable challenge to the competition, saying, “We are here to win – customers and market share.”

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