A new marketing strategy hits the streets of New York City with help from the U.S. Postal Service. Saks Fifth Avenue (NYSE: SKS) has announced that beginning in August 2007, the shoe department of its most famous retail location in midtown Manhattan will move from the fourth floor to the eigth floor. To celebrate this momentous occasion, what could be more appropriate than giving the newly renovated 8,500 square foot shoe showroom its own zip code? Afterall, the Associated Press reports the luxury shoe department will be a "destination" (according to Saks spokeswoman Lesley Langsam) including a VIP room for private shopping, spacious seating, refreshments and onsite shoe repairs. 
My first reaction to this announcement was critical. Having years of experience in direct mail and postal requirements, I was surprised that the U.S. Postal Service would work with Saks Fifth Avenue to give their flagship store's shoe department its own zip code (10022-SHOE). Equally surprising was the fact that the four digit extension won't be read by postal sorting machines and is virtually meaningless to the U.S. Postal Service. We've all been "educated" by the post office on the necessity of including the zip+4 extension in mailing addresses to ensure speedy and accurate delivery. Apparently, that rule doesn't apply to everyone.
Saks will benefit from their zip code promotion with a clever, unique marketing campaign, but I wonder what the U.S. Postal Service got with this deal. What do you think? How do you think the campaign will affect Saks Fifth Avenue and the U.S. Postal Service in both the short-term and long-term?
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