Fashion chains Saks Off 5th and Dress for Less are going to join forces. Both companies are part of the Austrian Signa Group.
Growth potential
With the merger, the parent company wants to create “a strong omni-channel off-price retailer”, according to a press release. The head office will be in Frankfurt while logistics will be centralised in Dietzenbach. With the merger, Signa expects to achieve significant synergy gains in logistics and IT, which should generate significant growth potential. The management will consist of Jörg Hensen, Constanze Olschewsky and Hanneke van Meeteren.
In addition to the seven existing stores, Signa plans to open another five new stores of the new concept this year in department stores of Galeria Karstadt Kaufhof.
Saks Off 5th came to the Netherlands and Germany in 2017. Barely two years later, the chain left Europe. The Dutch stores closed permanently while the German stores were converted into discount stores for Signa brands.
