Retailer Saks Incorporated announced it has acquired Club Libby Lu, LLC. Club Libby Lu owns and operates 11 mall-based Club Libby Lu stores, predominantly in the Midwest, catering to pre-teen girls.
Club Libby Lu, an experience-driven retail concept, refers to its customers as VIPs (Very Important Princesses) who receive the “royal” treatment as they enter the pre-teen fantasyland for shopping, birthday parties, and special events. Stores are typically 1,100 to 1,500 square feet and are organized into four shopping zones: Libby’s Laboratory (beauty and bath products), Libby’s Bedroom (bedroom accessories, casual wear, and sleepwear), Libby’s Jewelry box (charm shop and jewelry), and The Style Studio (make-overs, dress-up apparel, shoes, and accessories).
Three additional Club Libby Lu stores currently are scheduled to open in 2003, and Saks intends to open additional mall-based Club Libby Lu stores over time. The Company also expects to add Club Libby Lu shops to approximately six of its Saks Department Store Group (SDSG) department stores in 2003 and continue to roll-out more in-store shops in the future.
George Jones, President and Chief Executive Officer of Saks Department Store Group, noted, “Club Libby Lu offers a truly unique assortment of products and experiences to the tween customer. This fresh, distinctive concept is consistent with the strategic direction of SDSG – to provide differentiated merchandise to our customers and to make our stores more exciting places to shop. We believe that the Club Libby Lu concept has great potential both as a mall-based specialty store and as a destination shop within certain SDSG stores.”
Saks acquired 100% of the equity in Club Libby Lu from its three owners. Total consideration paid by Saks was approximately $12 million.
Mary Drolet will continue as Club Libby Lu’s Chief Executive Officer. Drolet will be based in Chicago and will report to George Jones. Drolet noted, “The merging of Club Libby Lu into SDSG provides a tremendous opportunity for accelerated growth for our mall-based retail operations as well as expanding through the SDSG store environment.”
