The huge deal to buy Saks, yet to be finalized, reveals the giant chess game of brand, buying and property location in the department store business. The dollar figure is said to be $2.9 billion. It brings the well-known Saks name to Canadian malls and likely signals a Toronto tussle between Nordstom and Saks. Nordstrom will soon open a couple of stores here. Beyond that, what name will prevail on the outside of the store? The Bay? Saks? Some think that the old Bay name is as musty as the boats the fur traders used to float their pelts down from Manitoba. The Bay traces its roots to 17th century traders in Canada. On oh-so-exclusive (and expensive) Bloor Street West it seems easy to see a Saks at the corner of Yonge. The company could win an award for demolishing that wretched parking garage on Asquith Ave. In the deal announced today, the choice Fifth Avenue property so associated with Saks name will be owned by The Bay. The Bay now owns U.S. high-end retailer Lord and Taylor, although some may wonder whether the decisions are made in Canada or elsewhere. Holt Renfrew must be watching with wonderment although its owners have the means to make their little department store pay if they choose to act on them. Remember, the Weston family stuned the world just last week with a similarly staggering retail buyout. Reuters
