Should luxury retailers follow Saks Fifth Avenue's example and open discount chains?
You’re undoubtedly familiar with Saks Fifth Avenue, right? With corporate headquarters located in the plush Midtown, Manhattan, New York City area, the American department store often competes with other luxury retailers, including Neiman Marcus, Nordstrom, Lord & Taylor, Bergdorf Goodman, Barney New York and Bloomingdales.
Originally established in 1898, the store will finally find itself in Canada in the fall of 2015. Specifically, downtown Toronto—the Queen Street building—will be hosting the department store, with a second Toronto location coming in spring 2016.
However, in an even bigger attempt to increase business, the store that offers everything from designer clothing for both men and women to jewelry and accessories, has decided to expand its discount option—Off 5th. Usually reserved for outlet-mall locations, Saks has been known for spacing out their mainstream and discount stores. But to widen their customer base, Off 5th stores are being opened relatively close to their mainstream sites.
“It’s a meaningful growth platform,” Chief Executive Officer Jerry Storch originally reported to The Globe and Mail.
Everyone likes to save money; more and more, consumers are looking for deals and discounts—and that’s exactly what Off 5th is offering the public: great clothes, great style and great prices.
As Saks Fifth Avenue continues to embark on the discount journey, it’s interesting to take a look at other stores that will also venture into this new territory. For example, Holt Renfrew & Co. Ltd. and Nordstrom Inc. are just two well known cases in point that will be exploring different options for customers—hr2 (which opened a couple of years ago in Canada) and Nordstrom Rack, which will hit the country in 2017.
So, is this a new trend? Are luxury retailers creating more options to expand their customer base? And if so, should other stores follow suit?
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It would appear that “yes” is the simple answer for all of the questions listed above. Discount or off-price stores often charge 20 to 60 per cent less than initial prices at mainstream stores. Furthermore, well-known brands that are usually from previous seasons are often available.
Sales show that customers are no longer just shopping at one store, but many. Specifically, consumers are thirsty for fashion and saving money. If each of the stores offer different options at different prices, then an expansion of clientele is more likely. In short, retailers can make more money and create long lasting customers.
Health Catalyst: An agile approach to healthcare data
Healthcare Catalyst is quite literally a healthcare providers’ catalyst for change when it comes to their measurable, data-informed improvement in analytics, software and services.
Founded in 2008 in Salt Lake City, Utah, Health Catalyst is dedicated to enabling health care organisations to build a healthcare-specific, open, flexible, and scalable data platform and fully integrated suite of analytics applications.
This enables health system partners, including Northwell Health in New York which serves a population of 11 million, to realise measurable value within months. “Our customers have recognised the potential to use data, to meaningfully improve their clinical, financial and operational business performance outcomes,” said Mike Doyle, Chief Customer Officer.
Formed by a group of healthcare veterans – with a quest to develop a data warehouse that could handle the complexities unique to healthcare data – they revolutionised the clinical process models and use of analytics and discovered the solution now known as Adaptive Data Architecture, which is agile, flexible and can be implemented in a matter of weeks compared to a matter of years.
Today, Health Catalyst helps clinicians in more than 250 hospitals that care for more than 100 million patients each year.
Health Catalyst offers a solution in three parts:
Data Operating System
Cloud-based DOS is a healthcare-specific, open, flexible, and scalable that provides customers a single environment to integrate and organise data.
Analytics applications build on top of the data platform and allow customers to make measurable clinical, financial and operational improvements.
World-class team of analytics and domain experts leverage technology to help customers shorten time-to-value and achieve sustainable, measurable improvements.
The fully integrated data platform and suite of analytics applications helped clients during the pandemic, in ways even Health Catalyst could never have imagined. Health Catalyst offered products and services to support customers’ agile response to the pandemic in four phases:
“By having the data operating system, our clients were able to take advantage of the integrated source of data to meet challenges that they were facing in their local geographies due to the pandemic in ways that we could never even have predicted,” said Doyle.
Doyle highlighted Health Catalyst’s Value Architecture group, which helps the company ensure that its technology and expertise are delivering measurable and meaningful value to our clients. “I think another key differentiator is our open platform that our clients are able to use to accelerate their own integration of data, but it is customisable, configurable in ways that makes it unique for them in ways other cookie cutter analytics just can’t match.
“We like to start every discussion by listening and understanding how we can help our customers avoid making mistakes and getting the most out of their investment in data.”
Speaking about their partnership with Northwell, Doyle said: “We're very grateful for this partnership and want to thank these visionary leaders who are able to envision a future using data that is light years beyond what we can think of today.”