Saks Global, the parent company of Saks Fifth Avenue, Saks Off 5th, Neiman Marcus, and Bergdorf Goodman, has announced a significant reversal in its decision to close over 160 locations. This change comes after successful renegotiations with several of its vendors, offering relief to long-time customers and employees.
1. What’s Behind the Reversal?
Marc Metrick, CEO of Saks Global, revealed the change during a meeting with analysts from BMO Capital Markets in June. According to Simeon Siegel, a managing director at BMO, Saks Global’s decision to reverse the closures indicates that its stores are located in optimal areas and that the company is satisfied with its current fleet of stores.
2. Details on the Saks Global Footprint
Saks Global’s diverse portfolio includes:
- 33 Saks Fifth Avenue stores
- 86 Saks Off 5th stores
- 36 Neiman Marcus stores
- 5 Neiman Marcus Last Call stores
- Bergdorf Goodman’s flagship store in Manhattan
Together, these make up just over 160 locations across the U.S.
3. The Future of the Neiman Marcus Dallas Location
One of the most high-profile closures was the Neiman Marcus location in Dallas, Texas, which had significant historical value for the city. City leaders fought to save it when the closure was first announced earlier this year. While Saks Global has not confirmed whether the Dallas store will be fully saved, it has agreed to keep the location open through the holidays of 2024.
There have been ongoing discussions about transforming the Dallas location into a luxury retail experience, a curated art exhibition, or a fashion event center. These ideas are still in development.
4. Financial Stability and Vendor Relations
Saks Global had been struggling with vendor issues, including late payments. However, CEO Marc Metrick highlighted that most vendors have agreed to new terms, and the company is working diligently to pay off any outstanding balances. Saks Global recently secured $350 million in financing commitments, boosting the company’s liquidity and financial stability.
Metrick expressed confidence in the company’s long-term prospects and its position within the luxury retail market, despite the ongoing macroeconomic volatility.
5. Luxury Consumers Continue to Spend
Despite concerns about the economy, Saks Global’s research shows that its luxury consumers are still spending. About a third of the company’s high-earning customers (making over $200,000 per year) remain confident in their personal financial situation, even if they have concerns about the broader economy.
Saks Global also confirmed that around 80% of its goods are sourced from Europe, and it plans to implement price increases to offset the rising tariff costs.
6. What Other Retailers Are Doing
While Saks Global is halting its store closures, other major department store chains like Macy’s and JCPenney are continuing with their store closure plans.
- Macy’s is in the middle of its Bold New Chapter initiative, which will see 150 stores close by the end of 2026. 66 of these stores have already closed this year.
- JCPenney has also closed a number of locations, with liquidation sales wrapping up in May 2024.
Despite these closures, Macy’s has been opening smaller-format stores and expanding its Bluemercury and Bloomingdales brands.
