$200 million facelift planned for Saks NYC store
The flagship Saks Fifth Avenue store in New York City will be getting a major makeover, as part of the $2.4 billion acquisition of Saks by Hudson's Bay Co. of Canada.
"We will be able to spend $200 million to $250 million to renovate this store to really make it the most exciting and spectacular department store in the world," Hudson's Bay CEO, Richard Baker, told CNBC on Monday—the closing day for the deal.
"Saks was very important and relevant for us, and something we worked on really since 2006," he said in a "Squawk Box" interview—citing potential synergies of up to $100 million a year. "There companies share a lot of the same DNA."
"For the customer, Saks is going to look the same way it's always looked, except we now have opportunities to be more efficient," he added. "We have opportunities to grow in new places," namely in Canada.
Hudson's Bay—which operates its own branded stores in 90 locations north of the border—also owns Lord & Taylor, another venerable New York department store chain.
As for the high-end consumer going into the holiday shopping season, Baker said he's optimistic.
"We've been on a long road to recovery," he continued. "While it's bumpy with the government doing what they do, the increased taxes, we're seeing improvement every month, every quarter."