Saks to close Libby Lu stores

NEW YORK Saks announced its plans to discontinue the operations of its Club Libby Lu specialty store business. The company expects the Club Libby Lu store closure process will be completed by the end of the company’s first fiscal quarter ending May 2, 2009.

Saks currently operates 78 Club Libby Lu stand-alone stores in malls nationwide and 20 Club Libby Lu store-in-stores within former SDSG stores. All Club Libby Lu locations are leased, with an average store size of 1,100 square feet. Club Libby Lu generated revenues of approximately $60 million for the fiscal year ended Feb. 2.

Steve Sadove, chairman and ceo of Saks, noted, “Club Libby Lu is an innovative concept that was a better strategic fit with our traditional department store business. Discontinuing the operations of Club Libby Lu is the appropriate decision so that we can focus 100% of our time and resources on executing the strategies of our core Saks Fifth Avenue business.