The owner of Saks Fifth avenue says it will split the luxury department store’s website into a separate business after raising $500 million. Marc Metrick, chief executive of the Saks, joins 'Closing Bell' to discuss. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
In March, Saks Fifth Avenue led the move when the retailer announced it would be splitting off its e-commerce arm, after raising $500 million from venture capital firm Insight Partners.
Saks’ 40 bricks-and-mortar storefronts became a separate entity known as SFA and remain wholly owned by Hudson Bay Company. Saks.com plans to go public during the first half of next year, at a reported $6 billion valuation that could signal to more investors that it is a profitable strategy for more in the retail sector.
That $6 billion valuation would triple the value that Insight Partners pegged Saks’ online business as being worth when it provided financing early this year.
“If Saks believes it can get $6 billion, and the banks believe it could get $6 billion in an IPO, then what could a Macy’s get or what could a Kohl’s get?” Drexler said. “It got the wheels turning across Wall Street to look at various retailers to see where some low-hanging fruit might lie in this e-commerce separation idea.”
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