Saks Inc. Competition
Now Viewing Saks Inc.'s competition in: Internet and Catalog Retailers
Recent Developments
The Montgomery Ward Catalog Lives - Swiss Colony bought the rights to the iconic Montgomery Ward catalog and online business in August 2008. Swiss Colony, which publishes more than a half dozen other catalogs, plans to resurrect the publication in January 2009, marking the second time Montgomery Ward has resurfaced this decade. Direct Marketing Services acquired the brand's rights in 2001 after the original Montgomery Ward went out of business, then relaunched it in 2004 as an e-commerce site. Swiss Colony believes "the catalog from everyone's childhood" still has solid brand recognition and will be a strong contender in the catalog industry.
Auction Novelty Wearing Thin - eBay will change its fee structure to emphasize fixed prices over bidding. The e-commerce site lowered the cost to list an item in its "Buy It Now" fixed price format more than 70 percent, though the company insists the auction model is still viable. "With these changes, we're making sure sellers have competitive opportunities in both formats--auction-style and fixed price," says an eBay rep. The move is intended to help eBay compete more effectively with Amazon and other big e-tailers.
Fraudulent Online Rx Dealers Increasing - More than 20,000 websites are abusing drug trademarks and peddling diluted or fake drugs, according to brand protection firm MarkMonitor's latest "Brandjacking Index"; estimated annual sales are about $13 billion. Just two pharmacies in the index are certified to sell drugs by the National Association of Boards of Pharmacy. MarkMonitor also reports a 66 percent jump in websites marketing pharmaceuticals, which aren't all overseas Rx dealers: nearly half use US hosting facilities and services.
Competitive Landscape
Demand is driven by consumers’ personal income. Profitability of individual companies depends on effective marketing to build a customer base. Larger firms enjoy central purchasing efficiencies and economies of scale in inventory management, customer service, and telecommunications. Smaller firms compete on outstanding customer service and providing niche products. Average annual revenue per worker for a typical company is about $400,000.
Internet and Catalog Retailers Industry Forecast
from Hoover's/D&B subsidiary First Research
The output for US retail sales, which includes internet sales, is forecast to grow at an annual compounded rate of 11.1 percent between 2008 and 2013.
Retail Sales Growth Fairly Steady
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Depends on consumer income
- Need efficient use of technology
- Risk: Slow economy limits spending on non-essentials
Industries Where Saks Inc. Competes
- Retail
- Department Stores (primary)
- Apparel & Accessories Retail
- Footwear & Related Products Retail
- Nonstore Retail
- Catalog, Mail Order & Television Sales
