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Will physical and digital retail operations perform better on their own?

October 20, 2021

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The lure of high valuation, standalone digital businesses is leading some retailers in a new strategic direction.

While most sales come through stores, online is accelerating because of shopping trends begun at the onset of the pandemic. The challenges of operating a growing and profitable omnichannel business, however, have some seeing a windfall in retailers spinning off online operations.

A Wall Street Journal reported earlier this week on plans by the Hudson’s Bay Company to split Saks Fifth Avenue physical and digital retail businesses into two units. The digital unit, which is preparing for an initial public offering, will be known as Saks going forward. The company expects Saks to be valued at $6 billion.

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