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Agenda-setting intelligence, analysis and advice for the global fashion community.

Does the E-Commerce Spinoff Make Sense?

This week, Saks Fifth Avenue’s online arm appeared to be headed for a $6 billion IPO while an activist investor pushed Macy’s to follow suit and spinoff its own e-commerce unit. But splitting up online and offline businesses, while tempting in the short-term, may be detrimental to long-term value creation.
Inside the renovated Saks Fifth Avenue flagship in New York in 2020. Getty Images.
Inside the renovated Saks Fifth Avenue flagship in New York in 2020. Getty Images.

The retail industry may be skeptical of Saks’ e-commerce spinoff, but Saks is laughing all the way to the bank.

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