Saks Global is closing nine of its luxury department stores, including eight Saks Fifth Avenues and one Neiman Marcus, to focus on its most-profitable locations as it navigates bankruptcy proceedings.
The New York-based luxury retail powerhouse, the parent company of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, on Tuesday announced its latest round of store closings after "critically" analyzing the geographic footprint, financial and operational performance of their retail locations, according to court filings. At the end of last month, Saks Global said it was shutting nearly all of its outlets that operate under the Saks Off 5th and Last Call banners, totaling roughly 60 stores, to focus on its luxury locations.
With the new round of cuts, Saks Global plans to concentrate its brick-and-mortar footprint in areas with high-growth potential and has identified locations that face challenges such as weak demand and heightened competition, according to court filings.
The debt-ridden company filed for Chapter 11 bankruptcy protection last month and said it planned to evaluate its physical footprint. Even before filing for bankruptcy, Saks Global had been closing some stores, like its Saks Fifth Avenue locations in San Francisco and Palm Beach, Florida.
And Saks Global said it is still reviewing its portfolio for additional cuts. Saks Global has been struggling since its December 2024 acquisition of luxury rival Neiman Marcus for $2.7 billion.
"We are initiating a series of actions to reinforce Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman as the ultimate destinations for luxury with a seamless multi-channel shopping experience," Geoffroy van Raemdonck, Saks Global CEO, said in a statement on Tuesday.
"By optimizing our operational footprint, we will be better positioned to deliver exceptional products, elevated experiences and highly personalized service across all channels, while simultaneously positioning our company to make investments that enable long-term growth and value creation," he said. "Importantly, opportunities within the luxury market remain strong, and Saks Global is primed to play a distinct, enduring role within the industry for many years to come."
There's been a surge of store closings — by chains like Amazon Fresh and Allbirds — and retailer bankruptcy filings — including Eddie Bauer and Francesca's — since the start of the year.
The sole Neiman Marcus location slated to close is in the Copley Place shopping center in Boston's Back Bay neighborhood that it leases from landlord Simon Property Group, a real estate investment trust.
The eight Saks Fifth Avenue stores set to close are located at The Summit in Birmingham, Alabama; Polaris Fashion Place in Columbus, Ohio; American Dream in East Rutherford, New Jersey; The Shops at Canal Place in New Orleans; Bala Plaza outside of Philadelphia; Biltmore Fashion Park in Phoenix; Stony Point Fashion Park in Richmond, Virginia, and Utica Square in Tulsa, Oklahoma.
Saks Global owns the properties in Birmingham, Columbus, Richmond and Tulsa, while the others are all leased, according to court documents. This latest round of closings marks the first phase of an ongoing review, according to Saks Global.
"Go-forward locations are being determined as part of the company's ongoing footprint optimization plan, based on a number of factors including performance and lease economics," Saks Global said.
The company also announced it is closing the majority of its standalone Fifth Avenue Club personal styling suites, an initiative created to serve Saks Fifth Avenue customers in markets without a brick-and-mortar presence.
"Since the 2024 acquisition of Neiman Marcus Group, the company is now able to serve customers in many of these markets through the Neiman Marcus store portfolio," Saks Global said. "The luxury retailer plans to keep three locations in markets that present a growth opportunity for the company."
Before Tuesday's announcement, Saks Global had about 70 full-price luxury stores, including the two Bergdorf Goodman locations in Manhattan where no changes are planned.
REIT to redevelop Copley Place
Shortly after Saks Global announced it planned to close Neiman Marcus in Boston, the mall's landlord unveiled plans to redevelop the space. Indianapolis-based Simon Property said it plans to bring multiple tenants to the anchor location.
The roster will include Casa Tua Cucina, a Miami-born culinary marketplace with an open-kitchen setting, and Estiatorio Milos, a Greek seafood restaurant founded by restaurateur Costas Spiliadis. The redevelopment will also include luxury boutiques, to be named at a later date, according to Simon Property.
"Copley Place has always been Boston's most exclusive luxury destination, located in the heart of the thriving Back Bay," Mark Silvestri, Simon Property's president of development, said in a statement.
He described the new eateries as "globally recognized brands and iconic dining concepts."
Construction on the development that is expected to include an updated exterior is scheduled to begin later this year with phased openings, including additional retail, dining and wellness concepts, in 2028, according to Simon Property.