Saks Global is looking to plant its flag overseas and has set India as a preliminary destination.
The luxury retailer signed a franchising agreement with Reliance Industries Limited, the giant Mumbai-based conglomerate, to open Saks Fifth Avenue and Saks Off 5th stores in the country.
“We are very excited about our partnership with Reliance,” Richard Baker, executive chairman of Saks Global, told WWD on Tuesday. “Over the next 20 years there is a tremendous opportunity to grow luxury businesses and brands in India.”
For establishing the Saks brand in India, “There is not a better partner than Reliance,” Baker said.
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Saks Global had no details about which locations are being considered for Saks Fifth Avenue or the Saks Off 5th off-price business, or when Saks Global would open its first store in India.
One industry source indicated that Baker has been to India a few times, and that Saks Global expects to open its first store, a Saks Fifth Avenue unit, in the country in early 2026. Mumbai and Delhi, where other luxury brands have already expanded, would be among the most likely possibilities.
“The teams at Saks Global and Reliance have put together an agreement where Saks Global is going to support Reliance, which would be operating Saks Fifth Avenue and Saks Off 5th in India,” said the source. Franchising agreements typically have controls requiring the franchisee to adhere to certain standards of buying and store presentation.
Asked if Saks Global is considering international expansion beyond India, Baker said, “We think there is a healthy opportunity for Saks Global around the world,” without specifying any countries. There has been speculation that Saks Global has eyed Saudi Arabia for growth.
Outside the U.S., Saks Fifth Avenue owns three stores in Canada, including two in Toronto and one in Calgary. There is also a licensed Saks Fifth Avenue in Bahrain in the City Centre Mall in Manama, and another licensed Saks Fifth Avenue in Kazakhstan, in the Esentai Shopping Mall in Almaty. Saks Fifth Avenue had two licensed stores in Mexico City operated by Grupo Sanborns, a company owned by billionaire Carlos Slim, that were eventually closed.
Reliance disclosed its Saks Global agreement in its third-quarter financial report released last week. In the report, Reliance also indicated that the Saks Fifth Avenue Manhattan flagship is exclusively selling two of its fashion labels, AFEW by Rahul Mishra and AKOK by Anamika Khanna. The report further indicated that Reliance entered into a joint venture with Mothercare PLC to acquire Mothercare brand and its IP assets for the Indian subcontinent.
Reliance is active in several sectors, including oil, gas, chemicals, telecommunications, fashion and retail. Among the brands operated by the company in India are Gap, Armani, Burberry, Diesel, Marks & Spencer, Superdry, Brooks Brothers and Steve Madden.
Reliance reported that its retail segment delivered a strong performance during its last quarter, ended Dec. 31. “The business ably capitalized on the pick-up in consumption amid festive demand during the quarter,” the company said. “A superior understanding of customer needs and preferences enables Reliance Retail to serve a wide variety of demographic profiles with the right product, at the right time, through the right channel. With customer-centric innovation at its core, the business constantly endeavors to enhance the shopping experience of its customers through its vast reach and a constantly expanding product basket.”
Despite its small base, the luxury market in India could grow at an annual rate of 15 to 25 percent for the next seven years and reach around 23 billion euros to 38 billion euros by 2030, according to a Barclays report.
The international estate agent, Savills, said last year that brands should look beyond capital cities and leisure destinations, and consider opening stores in growing, affluent regions across India, China and Dubai.
“The global luxury landscape continues to widen and uncover exciting new possibilities, helping landlords create more opportunities for retailers, while also encouraging retailers to further embrace their customers,” said Anthony Selwyn, cohead of Global Retail at Savills.
Markets ripe for store openings due to their size, growing affluence, and relative under representation of luxury brands include Mumbai, Delhi, Jakarta, Bangkok and Dubai, according to Savills.
Last month, Saks Global finalized its $2.7 billion acquisition of the Neiman Marcus Group. The business now includes Saks Fifth Avenue, Saks Off 5th, Neiman Marcus and Bergdorf Goodman.
