Saks: A Luxury Retailer at a Bargain Price

The retail sector will hardly be a star performer in the five-year period ahead, particularly if the U.S.'s 'frugal consumer' trend continues. A decade of excessive consumption, over-expansion by chains and malls and now tightened credit spell one sure thing for retail: consolidation. Several chains will go out of business. But there are exceptions and Saks (SKS) will be one.