For Saks OFF 5TH, it’s all about the customer.

That was a key takeaway from a keynote presentation featuring Paige Thomas, president and CEO of Saks OFF 5TH — and Women in Retail Leadership Circle member — and CNBC reporter Melissa Repko on the first day of NRF 2023: Retail’s Big Show. During their conversation, Thomas discussed how after she joined Saks OFF 5TH in February 2020 — one month before the world closed down due to the pandemic — she and her team made some bold changes to the company’s strategy. One of these changes was an intense commitment to focusing on the customer.

“The first thing that we focused on was the customer,” Thomas said. “We did some research that had not been done in nearly three years.”

And what did Saks OFF 5TH learn about its customers? For one, it identified a quickly growing segment within its customer base. “She’s a high earner, very fashion-driven, who shops everywhere,” Thomas said. “It really gave us a bull’s-eye, to say, ‘How do we think about our merchandising strategy? How do we think about our customer experience and our competitive set?’”

Thomas also discussed some key findings and takeaways she learned from the 2022 holiday season. One key learning was that the customer’s wallet was definitely facing some pressure, “so the need to stay focused on the value equation in the market was very real.” In addition, because of the unusually large amount of  inventory retailers carried into the end of the year, “2022 was the most promotional I’ve ever seen” Thomas said. “That was directly attributable to the amount of inventory, and it created opportunity for traditional full-price retailers. That was right in our sandbox, and it played very well for us.”

Asked for any final advice for the NRF audience, Thomas said, “The answer always lies with the customer. One part of it is engagement — customer acquisition. The other is the customer experience, the customer journey. Do everything you can to smooth the path.”