Emily Essner, the president and chief commercial officer of Saks Global, emphasizes personalization as the essence of luxury retail, particularly in a crowded marketplace. During a discussion with William P. Lauder at the WWD Beauty CEO Summit, she articulated the company’s core strategy: “the art of you.” This concept revolves around creating tailored experiences for each customer, which is crucial in today’s luxury sector. With approximately 30 million luxury consumers in the U.S., Essner sees Saks Global’s vast customer base as a significant competitive advantage. The extensive data they gather enables them to provide personalized services, ensuring that each shopping experience resonates with individual preferences.
Despite the scale of their operations, Saks faces challenges within the luxury market, particularly amidst economic uncertainties. Essner acknowledges that fluctuations in the market often deter luxury consumers, making it harder for brands to maintain their appeal. However, she also suggests that some luxury shoppers might be tuning out external noise and uncertainty, which could alter historical trends. The implications of these shifts remain unclear at this stage, but Essner remains open to adapting to emerging consumer behaviors.
Amidst these challenges, Essner also addressed payments to vendors, a critical aspect of maintaining healthy business relationships. It was reported that multiple vendors faced payment delays over the past two years, an issue that they are actively remedying. She reassured stakeholders that all promised payments have been met and that receipts align with expectations for 2023, signaling a move toward stability for Saks. Closing this chapter will signify a renewed focus on their partnerships and overall brand reputation.
Essner underscores the importance of unique brand partnerships in beauty, reiterating that personalization and exceptional experiences are key. By collaborating with beauty brands, Saks aims to create exclusive launches and tailor offerings that stand out in the competitive luxury market. This strategy not only draws customers to Saks but also fortifies the brand’s identity as a premier destination for beauty and luxury products. The emphasis is on curating experiences that allow clients to connect deeply with both the products and Saks itself.
Moreover, the physical retail presence of Saks adds a layer of depth to the customer experience. With 71 strategically located stores, Essner highlights the company’s commitment to delivering exceptional in-person services. Saks boasts some of the best aestheticians and makeup artists in the industry, ensuring clients receive a luxurious and personalized treatment during their visits. This physical engagement is complemented by a robust e-commerce platform that garners over 700 million visits annually, showcasing the importance of blending in-store and online experiences for customer satisfaction.
Finally, when discussing the differentiation between Saks and Neiman Marcus following their acquisition, Essner insists that the focus should not solely be on distinguishing the brands. Instead, she believes consumers desire authentic and comprehensive experiences that reflect their true selves. This perspective emphasizes the importance of delivering services that fulfill customer aspirations, positioning Saks not just as a retailer, but as a fundamental part of each customer’s luxury journey.