Why Are Department Stores A Target For E-Commerce Spinoffs?

Just when retailers thought their imperative was to combine their e-commerce and stores into one, smooth, silo-free operation, along comes Saks Fifth Avenue, attracting hundreds of millions of dollars from investors after splitting them apart. In a series of conversations, various people familiar with the design and execution of the Saks separation declared it a success and suggested that other retailers should — and ultimately will — follow suit. That could happen quickly. Saks owner HBC has already gone on to give the same treatment to its off-price Saks Off 5th and Canadian department store Hudson’s Bay businesses. Activist investment firm Jana Partners, after floating the idea at a conference, is now reportedly pushing Macy’s to explore it seriously as well. And “financial sources” told Women’s Wear Daily that Kohl’s is next. Read more at Retail Dive.