Saks' jewelry sales wow over holidays

May 13, 2008

Jennifer DeWinter, senior vice president and general merchandise manager of fine jewelry and accessories at Saks Fifth Avenue.

By Mary Wisniewski

New York—In a holiday season marred by disappointing sales, Saks Fifth Avenue was among the few to prosper.

For the two-month holiday selling period ended Jan. 5, Saks' same-store sales increased 10.2 percent, while total sales increased 10.6 percent to $795.3 million. No specific figures were given for jewelry, but it outpaced the 9 percent rise in same-store sales for the fourth quarter, a spokesperson said.

Jennifer DeWinter, senior vice president and general merchandise manager of fine jewelry and accessories at Saks Fifth Avenue, credits the holiday success to the retailer's aggressive strategy of selecting and securing key designers and then offering the right names in the right geographic markets.

"Saks always pursues as many exclusives as possible, and this holiday season we have been very successful," DeWinter says. "We have a talented merchandise team that works closely with our store management team to ensure there are appropriate stock levels and the right assortments."

"Ballon Bleu de Cartier" watch in the large model with stainless steel and yellow gold; suggested retail price is $7,900. Sold at Saks Fifth Avenue.

Saks has also experienced a dramatic increase in the number of large-transaction sales and strong growth in the top end of the market, she adds.

Not surprisingly, DeWinter says Saks' retail clients are drawn to the most coveted brands—both newer brands and iconic ones such as Cartier, Chopard and Chanel. The chain's exclusive agreement with high-end diamond brand Graff did well too.

"[Graff's] success at Saks is a further indication of increase in the large-transaction sales," DeWinter says.

In terms of marketing, DeWinter says Saks tailors its material to the different market segments.

For example, one fine-jewelry catalog is designated for high-end clientele and another for its best ready-to-wear clients. For Mother's Day, Saks sends out a direct-mail catalog focusing on products in more accessible price points.

Editor's note: This story first appeared in the May 1, 2008 issue of National Jeweler.