Monday, September 19, 2005

The joy of Saks

Note from Steve: This article suprised me. I had assumed from the pitiful store hours and sparse crowds that Saks in Raleigh was tanking. Guess not. I'm glad I'm wrong.

High-end store warming up relationship after a year in Triangle

By SAMANTHA THOMPSON SMITH, Staff Writer
The News & Observer, Raleigh, NC

It's a slow Thursday night at the mall. Every other department store in the Triangle is wrapping up a sluggish evening before what's expected to be an even slower Labor Day weekend.

But at Saks Fifth Avenue at Triangle Town Center, things are just getting warmed up. Dozens of 20- and 30-something women in designer jeans, stiletto pumps and silk camisoles are sipping cocktails, checking out the Giuseppe Zanotti shoe selection or sampling some Trish McEvoy makeup. They're waiting for a charity bachelor auction to get started, all part of a "Sex and the City" girls night party held at Saks.

Most of the women here aren't Saks regulars. In fact, a few have never been here before. Only a handful can afford the $895 Jimmy Choo suede boots or $2,400 Louis Vuitton bags.

But for Saks general manager Mohammed Ali and his staff, it's a prime opportunity to build relationships with new customers.

Those who shopped Saks Fifth Avenue before it opened here a year ago don't need fancy cocktails or the area's hottest male singles to entice them to spend money at the store. They already know about the deep selection of designer brands and the bend-over-backward customer service.

But one of Ali's biggest challenges in the store's first year in the Triangle has been to entice new shoppers -- the old upper-crust Raleigh guard or the young, hip boutique shopper -- into the store to show them Saks isn't an intimidating place to shop. "We're constantly trying very hard to break that perception," he said.

Don't get him wrong. Ali is pleased so far with his success since opening last Sept. 9.

He says the store last year was $4 million over sales targets. He expects this year to be $6 million over sales targets, although he didn't say what the targets were, or what percentage he was over.

Shoppers have flocked to the store's Louis Vuitton boutique. They've gobbled up premium denim. And they've enjoyed the selection of Juicy Couture so much, Ali had to move out a mock living room in the contemporary department to make more space for Juicy.

He readily admits the store has gotten to this point in large part because of a sharp focus on customer service.

That starts with his list, a one-inch thick computer printout of his customer's spending habits. Each day, Ali combs through it, figuring out who's buying what, what's selling. He checks what his top 100 to 150 customers have been up to, whether his sales people have been watching out for them and calling them when something they might like arrives at the store.

Those faithfuls make up a bulk of the store's business. Local jewelry designer Jennifer M. Wadford is one of them.

Because of Saks, Wadford said she spends less time in local boutiques. Saks often has her size -- and if they don't, a store associate will get on the phone to another store and have the size shipped to Wadford's house within days.

When she goes shopping with her kids, likely a sales person comes up and gives her kids snacks or a drink -- instead of giving her a dirty look.

But likely the biggest selling point about shopping at Saks for her is the credit card. She gets money back by using it.

"It has changed my feelings about where I will look for something first," she said. "Saks certainly makes my life a lot easier."

Diane Lazaras, 34, and Lisa U. Sandman, 43, are sold too. Lazaras often drove to Washington, D.C., for a new outfit for a special event. Sandman would hit upscale stores in Cameron Village, Falls Village and Crabtree Valley Mall to pull together an outfit.

Now they find themselves saving time by shopping at Saks.

"You can get it all done in one-stop shopping in a department store that has everything," said Sandman, who lives five minutes from the store in North Raleigh.

But for every customer sold on Saks, a slew of shoppers in the Triangle -- especially those who live inside the Beltline or in Durham and Chapel Hill, have never seen the inside of the store -- or Triangle Town Center, for that matter. Other shoppers have shopped Saks out of curiosity just once, and haven't been back because the store seemed too far away from their home or too expensive. Or they simply preferred the one-on-one service at some of the local boutiques closer to their homes.

Kristin Eaton, 29, of Durham is one of those. She's not a Saks regular. In fact, the only way she'd consider shopping at the store is if she had a special occasion to buy for. "It's good to treat yourself," she said.

Tonya Fields, 31, only shopped Saks once when the store first opened. "I don't normally come here," she said, as she waited in line to get into the "Sex and the City" party with friends.

Some local boutique owners say Saks' impact has been minimal.

"I don't know anyone who shops there," said Kelly Rogers, who owns the high-end shoe store Plush at North Hills.

She tries to stay clear of shoes that Saks and other department stores carry to keep her selection unique to the market. So instead of Ferragamo and Jimmy Choo shoes, she's got Fornarina and Blue Dragon.

Other stores have taken a different approach.

For instance, Belk at Crabtree Valley Mall -- which for years appealed to a middle-class Southern shopper -- this fall is expected to be packed with designer clothes by Cynthia Steffe, Theory, Elie Tahari, Betsey Johnson and Vera Wang -- designers that used to be just at area boutiques and department stores like Saks Fifth Avenue and Nordstrom.

More stores also seem to be paying more attention to customer service as a way to stand out. The boutique C.T. Weekends offers you some water or a soda while you shop. And the sales staff knows the delicate balance of helping the shopper find what they need and leaving them alone to do their shopping.

"I think Saks has motivated the other stores to do a better job," Sandman said.

The store has had stumbles. Prada and Gucci -- two brands virtually synonymous with Saks at other markets -- still aren't here. And because of slow business during weekday evenings, the store since the spring has been closing early, at 7 p.m., a move that allows Saks to accommodate parties like the "Sex and the City" girls night.

Ali said the store is better prepared for fall and the holiday shopping season. The store will resume regular shopping hours in November. And it will be stocking more fashion items as well as basics.

"This store is going to be a $50 million store," Ali said. "It's an Atlanta in the making."

Time will tell.

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