In a surprising turn of events, Saks Off 5th is shutting down a staggering 57 locations, leaving the future of its off-price retail operations hanging in the balance. On Thursday, Saks Global officially announced that it would be winding down a significant portion of its off-price endeavors, including ending its e-commerce platform for Saks Off 5th and closing most of its physical stores.
Out of the 69 Saks Off 5th stores that previously operated, only 12 will remain open after this closure phase. Starting this Saturday, 34 locations will kick off their closing sales, with an additional 23 stores slated to start their liquidation sales on February 2.
In parallel, Last Call, the clearance outlet for Neiman Marcus, is also nearing its end, as all five of its locations are set to close their doors.
Three years ago, Saks Off 5th's e-commerce sector and its brick-and-mortar stores were separated into distinct entities. In the announcement regarding the downsizing, Saks Global emphasized that this strategic decision aims to "sharpen its focus on luxury retail and full-price selling." However, these closures still hinge upon final approval from the bankruptcy court.
The company elaborated that these measures are part of a broader strategy to assess its operational scope, ensuring that it remains well-poised to invest in avenues that offer the most potential for sustainable growth and profitability within its luxury retail brands and partnerships.
This news aligns with a previous report by WWD from January 9, which indicated that approximately 50 Saks Off 5th stores were expected to close. The necessity of liquidating the e-commerce division and many physical stores stems from Saks Global's urgent need to raise capital to address its mounting debt, which escalated following its $2.7 billion acquisition of the Neiman Marcus Group in December 2024, along with unpaid bills owed to vendors for past shipments.
Such a drastic decision raises concerns about whether Saks Off 5th might eventually vanish from the retail scene entirely. Over the years, the Off 5th brand has faced numerous management shifts and fluctuating merchandising and pricing strategies, resulting in significant losses. Current estimates suggest that the combined revenue from both the stores and online operations could range between $400 million and $500 million.
Moreover, there is a strong possibility that other stores within the Saks Global portfolio, including select Saks Fifth Avenue and Neiman Marcus locations, may also face closures, as previously reported by WWD.
This downsizing presents a potential opportunity for competitors in the off-price retail sector, such as Nordstrom Rack and T.J. Maxx, to expand their footprint further.
A few Saks Off 5th stores will continue to operate, primarily serving as channels for selling leftover inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. Consequently, Saks Global plans to cease direct merchandise purchases specifically for Saks Off 5th.
Interestingly, Saksoff5th.com, which operates as a distinct legal entity from Saks Global, will commence a wind-down of its activities, initiating an online closing sale beginning Friday.
"As we proceed with Saks Global’s transformation, we are implementing decisive actions to realign our business model to better cater to our luxury clientele and to enhance full-price selling across our core luxury brands," stated Geoffroy van Raemdonck, the CEO of Saks Global. "These measures will position us favorably to capitalize on the best opportunities for long-term growth and value creation. We extend our heartfelt gratitude to our Saks Off 5th and Last Call teams for their invaluable contributions to our loyal customers."
Additionally, the company is currently accessing the initial portion of $500 million from a larger $1.75 billion committed capital fund, intended to support its operations and transformation initiatives across its portfolio. This funding will facilitate timely payments to brand partners and expedite inventory flow across its full-price retail brands.
Here’s a list of the Saks Off 5th locations closing as of February 2: Mebane, N.C.; Charleston, S.C.; Grand Prairie, Texas; Ala Moana in Honolulu; Petaluma, Calif.; Glendale, Ariz.; Tucson, Ariz.; Merrimack, N.H.; Riverhead, N.Y.; Clinton, Conn.; North Atlanta in Woodstock, Ga.; Aurora, Ill.; Dallas Park; Northbrook, Ill.; Eagan, Minn.; Columbus, Ohio; San Diego; Camarillo, Calif.; Ontario; Milpitas, Calif.; State Street in Chicago; Stamford, Conn.; Greenburgh, N.Y.
Saks Off 5th locations that will begin closing sales starting January 31 include: Arundel in Hanover, Md.; Honolulu; Palm Desert, Calif.; Scottsdale, Ariz.; Chandler, Ariz.; Eastchester, N.Y.; Bridgewater, N.J.; Clarksburg, Md.; Deer Park, N.Y.; Shrewsbury, N.J.; Elizabeth, N.J.; Somerville, Mass.; Wrentham, Mass.; Orlando Vineland in Orlando; Naples Park Shore in Naples, Fla.; Orlando; Lutz, Fla.; Ellenton in Tampa; Destin, Fla.; Charlotte, N.C.; Woodstock, Ga; Hilton Head in Bluffton, S.C.; Rosemont, Ill.; Cypress, Texas; Sugarland, Texas; Katy, Texas; Costa Mesa, Calif.; Beverly Connect in Los Angeles (West), Calif.; Woodland Hills, Calif.; Las Vegas; Livermore, Calif.; San Antonio, Texas; Cabazon, Calif.; Las Vegas South.
Remaining open Saks Off 5th locations include: Gallery at Westbury Plaza in Garden City, N.Y.; Sawgrass Mills in Sunrise, Fla.; Woodbury Common Premium Outlets in Central Valley, N.Y.; Bergen Town Center in Paramus, N.J.; Town Center Aventura in Aventura, Fla.; Buckhead Station in Atlanta; Miromar Outlets in Estero, Fla.; Somerset Shoppes in Boca Raton, Fla.; The Outlets at Orange in Orange, Calif.; Dolphin Mall in Miami; Palm Beach Outlets in West Palm Beach, Fla.; Grapevine Mills in Grapevine, Texas.
Lastly, Last Call locations that are holding closing sales include: Sawgrass Mills in Sunrise, Fla.; Desert Hills Premium Outlets in Cabazon, Calif.; Grapevine Mills in Grapevine, Texas; San Marcos Premium Outlets in San Marcos, Texas; The Outlets at Orange in Orange, Calif.
