NEW YORK — Saks Fifth Avenue is spinning off its website into a separate company, with the hopes of expanding that business at a time when more people are shopping online.
HBC, the parent company of Saks, said Friday that the new company would focus on growing online sales by adding more products and services, such as styling.
Online shopping has boomed during the pandemic, even for high-priced luxury items, as homebound people avoid stores. Farfetch, an online store that sells goods from Gucci, Fendi, and other high-end designers, said revenue soared 64% last year from the year before.
HBC said that Insight Partners would buy a $500 million stake in the new online business, valuing it $2 billion. The Saks physical stores will remain operated by HBC, a privately-held company that also operates Canadian department store chain Hudson’s Bay.