Saks Inc., a retailer that has sold half of its stores in the United States, will open the first China outlet for its Saks Fifth Avenue unit in 2008, tapping growth for luxury products in the world’s fastest-growing major economy.
　　
　　Saks said it expected to sign a licensing agreement Tuesday with Roosevelt China Investments Corp. to develop stores on the Chinese mainland and Macao. The partner will own and operate the stores under the agreement, Saks said in a statement. The first store will open in Shanghai’s riverside embankment known as the Bund.
　　
　　In China, Prada, Bulgari, Valentino and other companies are seeking to expand in the luxury goods market, which may be growing as much as 60 percent a year.
　　
　　The Saks investment is part of Shanghai’s plans to restore part of the Bund, which formed part of the International Settlement of Shanghai, and which is largely made up of buildings from the 1920s and 1930s.
　　
　　Saks’ planned expansion in China comes at a time when U.S. retailers expect slower growth. The Birmingham, Ala.-based company reported a fourth-quarter loss of US$2.42 million, compared with a US$96.6 million profit a year earlier, on expenses to write down assets and close stores. Earnings at the Saks Fifth Avenue luxury unit plunged 87 percent on markdowns. The retailer has previously opened stores in Saudi Arabia and the United Arab Emirates.
　　
　　The National Retail Federation has said U.S. retail sales will slow this year as consumers face increased interest rates and energy prices.
　　
　　China’s luxury-goods market, worth about US$631 million, is growing between 50 percent and 60 percent yearly, Claudia D’Arpizio, a consultant with Bain & Co. in Milan, has said.