HOUSTON — The relocation of Saks Fifth Avenue’s flagship store is allowing leading retail real estate firm Simon Property Group to use the space for other purposes, and the retailer to open a two-story, 198,000-sq.-ft. space adjacent to the one it will vacate at the Houston Galleria.
The Galleria is Houston's premier shopping and tourist attraction, Texas' largest shopping domain and the nation's fourth largest shopping center with more than 2.2 million sq. ft. of retail space, four department stores and more than 350 other stores that generate retail sales in excess of $1.25 billion. The Galleria is jointly owned by an affiliate of SPG and Institutional Mall Investors LLC.
The relocated flagship store is scheduled to open in fall 2015. Until then, Saks Fifth Avenue will continue to operate in its existing store in the Galleria.
Once the flagship opens, Simon will convert the space Saks leaves behind into a two-level mall wing connecting the new Saks store, the existing Neiman Marcus store and luxury retailers. The new two-level expansion wing will include the addition of 35 luxury and other unique retailers as well as feature restaurants.
"The Houston Galleria is among the nation's most productive shopping destinations with an impressive, industry-leading diverse tenant mix," said David J. Contis, president, Simon Malls, "The commitment of Saks to build a new state-of-the-art store, coupled with the expansion of the mall will continue to enhance the Galleria's appeal to Houstonians and tourists from around the globe."
"Houston has been a great market for Saks Fifth Avenue for nearly forty years, and we are so excited about relocating our flagship store to a new space within the iconic Houston Galleria,” said Steve Sadove, chairman and CEO of Saks Incorporated. “Our new store will allow us to even more beautifully showcase our distinctive merchandise selections, and of course, we will continue to provide our many loyal customers with Saks Fifth Avenue's trademark exemplary service."
Simon's plans also include the addition of a multi-tenant building for a select group of luxury retailers along Westheimer Road and upgrades to the interior, exterior and parking decks of the Galleria. A 300-unit, luxury residential high-rise adjacent to the Galleria at the corner of West Alabama and Sage is also being contemplated, which would provide residents with all of the latest amenities, an outdoor pool and an indoor connection to the Galleria.
Saks currently operates 41 Saks Fifth Avenue stores, 69 Saks Fifth Avenue OFF 5TH stores an e-commerce site.