Ron Frasch and Steve Sadove
Steve Sadove and Ron Frasch aren’t just ready for the New Year—they’re excited about it. As the executives in charge of Saks Fifth Avenue, the team is shaping and redefining the company’s future at one of its most pivotal points.
“A year and a half ago, I don’t think any of us would have dreamed of the depth of the recession we went into,” says Sadove, chairman and CEO. “As difficult as things were, I’m so proud of how Saks reacted. We had to make tough decisions in order to position the company for the long term, but as a result, we were able to weather the storm. I think we’re going to come out stronger than ever before.”
Sadove’s confidence makes sense. He and Frasch, president and chief merchandising officer, have taken a different approach to understanding the impact of the past 18 months. “One of our board members made the comment ‘Don’t let a recession go to waste,’” Sadove recalls. “We’ve been using that as our mantra to challenge everything we do in terms of how we do business.”
One part of that approach was a revamp, including the NYC flagship store’s recently renovated third floor, which houses designs from 49 labels such as Louis Vuitton and Oscar de la Renta. The company is also investing in its online strategy, testing different ways to increase the reach of its customer communication. “In 2010, the enormous push of the company is to reinforce Saks as a brand,” Frasch explains. “You come here for exclusive products and outstanding service—these are the things that really allow us to offer a unique experience to our customers.”
With new strategies in motion, Sadove and Frasch are well prepared to handle all that lies ahead. “Our entire industry is evolving,” Frasch says. “People are really starting to think differently about how things used to work. I’ve been doing this a long time and I’ve never seen such an explosion of new ideas and creativity. It’s probably one of the most exciting times to be involved.”
