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Saks vs. Nordstrom: Battle of the Brands

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This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and watch out for more Battle of the Brands posts.

Financial Data

An examination of the financial data indicates that Saks Inc. (NYSE: SKS), with a market capitalization of $2.2 billion, is up about 15% to $20.50 so far in 2007. Meanwhile, Nordstrom Inc. (NYSE: JWN) has not fared as well: Nordstrom, with a market capitalization of $10.9 billion, is up about 3% to $50.80.

Products

In general, Nordstrom appears to carry a wider product line than Saks. One example would be women's apparel, where Nordstrom's line was more-extensive. Nordstrom also offered cocktail dresses in the $140 to $160 range, whereas Saks did not. That said, Saks appeared to do a better job at dress line selection: their line of black dresses was exceptional, with both contemporary and modern styles displaying eye-catching, striking/confident characteristics. Further, Saks appeared to be willing to reach slightly into Nordstrom's zone by offering black dresses as low as $180 to $200. Otherwise, Saks remained in its price zone, which was substantially higher, across apparel lines, than Nordstrom.

And that's perhaps another distinguishing characteristic between the two upscale retailers. While both Saks and Nordstrom serve the high-end consumer, Saks stays there, while Nordstrom carries many lines for the "mid-range" high-end consumer. One example here would be women's handbags: Nordstrom had several lines and styles (including leather bags) in the $200 to $300 range, whereas Saks for the most part remained in the stratosphere, with handbags above $800. Further, bag prices at Saks quickly moved above $1,200. That said, Saks, again, appeared to best Nordstrom in women's handbags; their Dolce & Gabbana and Bottega Veneta lines offered contemporary-yet-functional characteristics for that smart and sophisticated professional look.

While both Saks and Nordstrom offer numerous products in jewelry/accessories, home gifts, and gifts for children, apparel remains each retailer's core offering. Each offers high-quality garments from designers and main-line distributors, and you'll never have to worry about missing a primary fashion trend at either store.

Shopping Experience

A third distinguishing characteristic between the two stores is that Nordstrom appears to offer wider product choices for men. Although Saks offers an extensive men's line, one still gets the impression that when a man walks into Saks he's there to buy a gift for his wife or girlfriend, whereas in Nordstrom, he could be just out to buy button-down shirts, a blazer, or a designer windbreaker. Perhaps it's the location, perhaps its the way the stores are laid-out, but Nordstrom appeared to have a more male-friendly environment. At any given time you can see dozens of men shopping in Nordstrom, pausing to converse with someone they may know; in Saks there is this sense that the men in there are on a mission to get the right gift/item for that significant other.

Concerning the overall shopping experience, its hard to beat Saks. Yours truly sampled the Nordstrom at the Westchester Mall in White Plains, New York. Now keep in mind that the Westchester Mall is an upscale mall located in one of the richest counties in the western world: the Nordstrom experience was pleasant and convenient.

Yet it paled in comparison to Saks in Midtown Manhattan, which is, of course, on Fifth Avenue. Although it should be noted that both Nordstrom and Saks offered informed, experienced, and attentive staff, it's hard to beat the experience of shopping at Saks Fifth Avenue. As is the case with every other major venue in the capital of the world, upon entering Saks you immediately know you're in a special place. For example, very few shoppers have pictures taken of themselves outside their local mall. At Saks Fifth Avenue, this happens continually. Although its stores in the field are not likely to duplicate its Midtown experience, for its ambiance, location, and energy at its "destination of significance" Saks Fifth Avenue, Saks gets a higher grade than Nordstrom concerning shopping experience.

Summary

Therefore, you, the shopper are left with a "difficult" choice. You're faced with choosing between an array of upscale lines at Nordstrom, or even-more rarefied upscale lines, and at times more cutting-edge items at Saks.

To be sure, a difficult choice. But trust me, there are worse problems.

Be sure to vote in our poll for Nordstrom or Saks as your preferred brand, and let us know why you love it in the comments. Results of all Battle of the Brands match-ups coming soon.

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Last updated: November 25, 2009: 05:47 AM

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