The Canadian holding company has raised $200 million to build out the e-commerce side of its off-price arm, Saks Off 5th, as a “new digitally native” business, it announced Monday, June 21. Investment firm Insight Partners led the funding, which values SaksOff5th.com at approximately $1 billion.
Hudson’s Bay will continue to own the 105 Saks Off 5th brick-and-mortar locations, which will be separate from the online arm.
“As a true off-price business with a superior merchandise offering, Saks Off 5th has a significant opportunity to capture additional market share by further expanding its digital capabilities,” HBC chief executive Richard Baker said in a statement.
Earlier this year, Insight Partners invested $500 million in HBC’s spinoff of the original Saks Fifth Avenue chain’s online shop, SaksFifthAvenue.com.