US department store Saks Fifth Avenue is one step closer to becoming a global retailer and could soon open in Europe after its parent company, Hudson’s Bay, bought German department store chain Galeria Kaufhof.
The deal, valued at €2.4bn (£1.7bn), will see Hudson’s Bay take control of 103 Galeria Kaufhof stores in Germany, 16 Sportarena shops and 16 Galeria Inno department stores in Belgium.
Hudson’s Bay chief executive Jerry Storch has suggested that Saks Fifth Avenue and Saks Off 5th fascias in Germany and Belgium, saying the transaction provides “strong foundation to explore additional opportunities for growth”.
However, Hudson’s Bay said it would maintain Galeria Kaufhof’s store count and staff numbers.
Hudson’s Bay executive chairman Richard Baker said: “We have been carefully surveying the European retail landscape for many years for a potential expansion opportunity and have watched Galeria Kaufhof build on its exceptional real estate to become the number one department store in Germany.”
Hudson’s Bay chief executive Jerry Storch said: “This transaction is a significant step forward in our plans to become a premier global retailer. This is a strong foundation to explore additional opportunities for growth throughout the continent.”
The deal is subject to conditions and is expected to be completed by the end of the third quarter of this year.
Hudson’s Bay finalised a deal to buy Saks Fifth Avenue in November 2013. In September 2013, former Harrods chief merchant Marigay McKee was hired to oversee the department store as president. However, she left just 15 months later and was replaced by Marc Metrick, an executive at Hudson’s Bay.