SaksGlobal has unveiled a sweeping restructuring plan that will permanently shutter nine luxury department stores and fourteen personal styling locations across the United States. The announcement, made on Tuesday, marks the first major consolidation of the company's physical footprint since its high-profile acquisition of Neiman Marcus Group last December.
The store closures affect eight Saks Fifth Avenue locations and one Neiman Marcus store, representing what executives describe as an "initial phase of optimization" for the newly combined luxury retail empire. The move comes as SaksGlobal navigates Chapter 11 bankruptcy proceedings while attempting to streamline operations and sharpen its focus on high-end, full-price merchandise.
Locations Targeted for Closure
The eight Saks Fifth Avenue stores scheduled to close later this year span multiple states and retail markets. Customers in Birmingham, Alabama will lose their location at The Summit, while shoppers in Columbus, Ohio must bid farewell to the Polaris Fashion Place store. The American Dream megamall in East Rutherford, New Jersey will also see its Saks Fifth Avenue anchor disappear, along with the Shops at Canal Place location in New Orleans.
Pennsylvania's Bala Plaza outside Philadelphia, Arizona's Biltmore Fashion Park in Phoenix, Virginia's Stony Point Fashion Park in Richmond, and Oklahoma's Utica Square in Tulsa round out the list of Saks closures. The sole Neiman Marcus location on the chopping block is the prominent Copley Place store in downtown Boston, a significant loss for luxury shoppers in New England's largest city.
Beyond Brick-and-Mortar
The restructuring extends far beyond traditional department stores. SaksGlobal is also eliminating its Horchow home catalogue, a legacy brand that has served affluent customers for decades. Additionally, fourteen Fifth Avenue Clubs—standalone personal styling suites that operated independently from full department stores—will cease operations.
The Fifth Avenue Club concept was originally developed to serve Saks' most loyal clients in markets too small to support a full-scale department store. However, following SaksGlobal's $2.7 billion acquisition of Neiman Marcus Group in December 2024, the company now believes it can serve those same customers through existing Neiman Marcus locations. Two Fifth Avenue Clubs will remain open in Indianapolis and Honolulu, with a third planned to launch in Palm Beach, Florida this fall.
Previous Closure Announcements
Tuesday's announcement follows earlier revelations that SaksGlobal is dramatically reducing its off-price presence. The company previously disclosed plans to close 57 Saks Off 5th outlet stores, leaving only a dozen locations to handle liquidation merchandise from the closing stores. Similarly, all five Last Call clearance centers operated by Neiman Marcus will shut their doors as part of the same strategic realignment.
These moves signal a decisive shift away from discount-driven sales toward a pure luxury positioning. By eliminating outlet and clearance channels, SaksGlobal aims to protect brand prestige and prevent full-price merchandise from competing with discounted goods.
Strategic Rationale
In a statement released Tuesday, SaksGlobal Chief Executive Officer Geoffroy van Raemdonck framed the closures as essential for long-term success. "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 multichannel shopping experience," van Raemdonck said.
The CEO emphasized that optimizing the operational footprint would enable the company to deliver exceptional products, elevated experiences, and highly personalized service across all channels. He also noted that the streamlining would free up capital for investments in growth initiatives and value creation.
"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," van Raemdonck added, expressing confidence in the company's future despite the current contraction.
Market Context and Implications
The luxury retail sector has faced mounting pressures in recent years, including changing consumer behaviors, the rise of digital commerce, and economic uncertainty affecting high-end spending. SaksGlobal's decision to consolidate its physical presence reflects a broader industry trend toward fewer, more impactful stores rather than extensive networks of locations.
The Chapter 11 restructuring provides SaksGlobal with the legal framework to shed underperforming assets and renegotiate leases and debts. This process, while painful for affected employees and communities, may ultimately strengthen the company's financial position and competitive standing.
Analysts note that the acquisition of Neiman Marcus created significant overlap in certain markets, making some store closures inevitable. The combined entity now operates 33 Saks Fifth Avenue stores, 36 Neiman Marcus locations, and two Bergdorf Goodman doors in Manhattan. The consolidation allows SaksGlobal to eliminate redundant operations while focusing resources on flagship locations and digital capabilities.
Focus on Digital and Experience
A key driver behind the physical store reductions is the growing importance of e-commerce in luxury retail. Affluent consumers increasingly research and purchase high-end goods online, reducing the need for extensive store networks. SaksGlobal appears to be betting that a streamlined physical footprint, combined with robust digital platforms and personalized services, will better serve modern luxury shoppers.
The company is also doubling down on experiential retail—creating immersive, high-touch shopping environments that cannot be replicated online. By concentrating resources on fewer locations, SaksGlobal can invest more heavily in store renovations, technology integration, and staff training at its remaining flagship properties.
Community Impact
The closures will undoubtedly affect hundreds of retail employees across the country, though SaksGlobal has not disclosed specific job impact numbers. The loss of anchor luxury stores may also ripple through shopping centers and malls, potentially affecting neighboring retailers and property values.
In Boston, the Neiman Marcus closure at Copley Place removes a key tenant from one of the city's premier shopping destinations. Similarly, the American Dream location's closure represents another setback for the troubled New Jersey megamall, which has struggled to maintain tenant occupancy since opening.
Looking Ahead
Despite the sweeping closures, SaksGlobal maintains that the luxury market remains robust and that the company is well-positioned for future growth. The remaining portfolio includes high-profile locations in major metropolitan areas such as New York, Los Angeles, Chicago, and Miami, as well as the iconic Bergdorf Goodman stores on Fifth Avenue.
The company's strategy hinges on the belief that a more focused, capital-efficient operation can better compete in an evolving retail landscape. By eliminating discount channels and underperforming stores, SaksGlobal hopes to elevate brand perception and capture a larger share of luxury spending from affluent consumers who value exclusivity and premium service.
As the retail restructuring continues, industry observers will be watching closely to see whether this aggressive consolidation strategy pays off. Success will depend on SaksGlobal's ability to seamlessly integrate its Saks and Neiman Marcus operations, deliver compelling digital experiences, and maintain its reputation for luxury and service with a smaller physical footprint.
The coming months will reveal whether this bold bet on quality over quantity can position SaksGlobal as the dominant player in American luxury retail for years to come.