Citing an improved California economy, Saks Fifth Avenue said Monday it will acquire four of the seven available I. Magnin store sites from R. H. Macy & Co., including stores in Beverly Hills and San Diego.
"California is a vibrant marketplace now," said Saks Chairman Philip Miller. "Regions go through economic cycles, but California will be a premier marketplace for the foreseeable future and we want a greater presence."
In addition to the Southern California stores, Saks is acquiring I. Magnin sites in Carmel and Phoenix. Terms of the acquisition were not disclosed.
The status of some I. Magnin sites has been uncertain since Macy's Nov. 18 announcement that the 12-store chain would be phased out. Earlier this month, Macy said it would convert five of the I. Magnin stores into Bullock's or Macy stores and place the remaining seven on the sales block.
Macy said it reached agreement with Saks shortly before Macy's acquisition by Federated Department Stores became official Monday under a merger agreement approved by both companies.
The upscale Saks chain, based in New York, already has stores in Costa Mesa, Palm Springs, Carmel and Beverly Hills. The Carmel and Beverly Hills stores will be augmented by the former I. Magnin sites.
The I. Magnin store in Beverly Hills is at 9634 Wilshire Blvd., near the existing Saks store at 9600 Wilshire. The I. Magnin store will be converted to a Saks by next August. The two Beverly Hills sites will be operated by the same management team.