Admitting that Saks Fifth Avenue made a big mistake by chasing young consumers with a line of tight clothing, new management is committed to winning back traditional customers who skew older and more
affluent. It is rebuilding its label fashions, investing in classic brands, such as Ellen Tracy, Chanel and Fendi, and tailoring its stores to better meet specific markets. Saks is also renovating its
regional outposts, including its Boston and Beverly Hills locations, to feature open cosmetic counters and more exciting fashion displays. Saks' Atlanta store, renovated last year, is serving as a
model. The shift is reflected in Saks' fall ad campaign, which embraces a broader approach to fashion. Saks executives say a cultural change is sweeping the company, with buyers taking bigger risks on
fashion, instead of playing it safe and fixating on inventory control. To win back its most loyal customers, it is offering Saks Fifth Avenue Private Collections. While trendy labels remain key, the
company is also beefing up selections in classic names in both men's and women's suits, as well as stocking up on such basics as bras. The chain, which has long lagged behind its rivals, faces heavy
competition at the upper end from Neiman Marcus and at the lower luxury tier from Nordstrom Inc.
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