In a surprising twist that’s sure to thrill luxury shoppers, Saks Global has pulled a major u-turn on its store closures, choosing to keep more than 160 locations open after renegotiating with vendors.
Earlier this year, things looked bleak for the company, with rumors swirling about widespread shutdowns. But now, CEO Marc Metrick is signaling a new direction, one that’s all about stability, confidence, and staying power in a retail landscape full of uncertainty.
The shift came to light during a June meeting with analysts from BMO Capital Markets, where Metrick confirmed that the department store giant had successfully reached new terms with most of its vendors. This move has allowed Saks Global to breathe new life into stores that were once at risk. According to BMO’s Simeon Siegel, this sudden shift suggests the company values its current store footprint and sees real potential in its existing locations.
Saks Global’s empire includes 33 Saks Fifth Avenue stores, 86 Saks Off 5th locations, 36 Neiman Marcus outlets, five Neiman Marcus Last Call stores, and the legendary Bergdorf Goodman flagship in Manhattan. Whether or not the Neiman Marcus location in Dallas will stay open remains unclear, though. This particular site sparked a ton of backlash earlier this year when it was marked for closure. The Dallas community and local leaders rallied hard to save it, given its deep cultural and historical ties to the city. While Saks Global hasn’t confirmed anything official, the company did agree to keep it open through the holiday season and is still discussing options like turning it into a luxury experience hub, fashion center, or curated art space.
The reason for all this instability in the first place? A string of late payments to suppliers and mounting financial pressure. But Metrick is now assuring analysts that Saks Global has resolved most of those issues and continues to chip away at any lingering debt. To top it off, the company recently secured $350 million in new financing and says it’s confident in its liquidity and vendor partnerships.
Despite all the doom-and-gloom predictions surrounding retail these days, like UBS forecasting 45,000 store closures across the U.S. in the next five years, Saks is clearly trying to buck the trend. Other retail giants haven’t been so lucky. Foot Locker plans to close 400 stores by 2026. Macy’s, under its “Bold New Chapter” initiative, is shutting down 150 stores, with 66 already gone this year. JCPenney just wrapped up a wave of closures in May, and Bed Bath & Beyond has left the brick-and-mortar game entirely, going all-digital.
But Saks Global is leaning into what makes it unique, its luxury clientele. The company’s own research shows that its customers, particularly those making $200,000 or more, are still spending even if they aren’t too thrilled about the economy. Tariffs, inflation, and higher prices? Not much of a concern for them. Saks also revealed that 80% of its products are still sourced from Europe, and that it plans to implement standard price hikes to balance out tariff costs without causing sticker shock.
While Saks is making power plays, Macy’s is still downsizing, all while investing in smaller-format stores and bolstering side brands like Bluemercury and Bloomingdale’s. Meanwhile, Saks is banking on loyal shoppers and vendor trust to keep its stores thriving.
It’s not a sure thing that every at-risk location will survive long term, but for now, Saks Global is staying open where it counts. And in a time when store closures are becoming the norm, that’s big news.
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