Hudson’s Bay Company plans to renovate and convert its Saks Fifth Avenue store in Santa Barbara to the Saks Fifth Avenue OFF 5TH format within the same location.

The conversion is expected be completed by October after existing merchandise is sent to nearby Saks Fifth Avenue stores.

“This is a strategic decision to optimize the potential of the location and still deliver a signature shopping experience within the market. We believe converting to an OFF 5TH location is the best decision for our company and for our customers,” said Marc Metrick, president of Saks Fifth Avenue.

Approximately 55 employees in the current Santa Barbara store will either be offered transfer opportunities or will receive employment separation packages, company officials said.

The new Saks Fifth Avenue OFF 5TH will be in the current Saks Fifth Avenue location at 1001 State St.