The news: Saks threw its hat into the retail media ring.

The ecommerce retailer launched Saks Media Network, which it says will give brands more opportunities to connect with luxury shoppers.

• Chanel Beauty, Ramy Brook, Dolce & Gabbana, and David Yurman are among the luxury brands testing sponsored placements on the retailer’s site, per Women’s Wear Daily.

How it works: Advertisers using Saks Media Network can take advantage of the retailer’s trove of first-party customer data and the more than 345 million site visits it receives annually.

• For now, the only ad formats available are sponsored product ads and on-site display banners.
• Brands can work with Saks’ in-house media team to develop customized strategies that help them cultivate deeper ties with the retailer’s network of affluent spenders.

The big takeaway: While Saks is a relatively late entrant to the retail media space, its access to luxury shoppers gives it a unique advantage—especially as softening demand for designer goods forces brands (and department stores) to find new ways to drive sales.

• The additional revenue stream could also help Saks relieve some of its cash-flow issues. The retailer has been struggling to pay vendors on time for several months, causing several to suspend shipments to the company. The lack of ready cash is also a sticking point in its negotiations to acquire Neiman Marcus.
• But it faces competition from Nordstrom and Macy’s, both of which are leaning into retail media as an antidote to sluggish sales.

Go further: Check out our latest Digital Ad Spending Forecast and Trends report, or explore the rest of our retail media coverage.