Saks CEO sees chances to close and open US stores

CHICAGO, March 9 (Reuters) - Saks Inc (SKS.N) could open more of its upscale department stores in the United States as luxury shoppers have started to spend more, Chief Executive Officer Steve Sadove said.

Saks Fifth Avenue plaque

Some U.S. markets could support Saks department stores, Sadove said, while the company will keep looking for opportunities to close money-losing shops.

"There are opportunities for a few Saks Fifth Avenues at this point, not many," Sadove said at a Bank of America/Merrill Lynch consumer conference that was also broadcast over the Internet. He said the company could also move some stores to different locations in cities where it already operates.

The company closed six Saks Fifth Avenue stores in fiscal 2010, and its Denver store will close later this month.

Saks, which sells brands such as Versace as well as its own branded apparel, will work on reducing the level of promotions, Sadove said. Its fiscal-year outlook assumes a flat level of promotions.

Sadove called "flash sale" websites, which sell goods at steep discounts for a limited period of time, a "wonderful business," but noted that the opportunity in apparel might be limited now that companies have a better handle on inventory.

"We do believe there's a viable business," he said, "but it's not going to be the same as when it was created in the depth of the recession."

Saks shares were up 0.6 percent at $12.40 in morning trading.

(Reporting by Jessica Wohl; Editing by Lisa Von Ahn)