Some shoppers may remember when department stores were the heart of the mall experience. There was something so nostalgic about browsing racks filled with designer labels, listening to the sound of elevator music, and searching for the perfect “first-day-of-school” outfit, turning these one-stop destinations into experiences.
For many, it’s difficult to imagine that era fading away. Yet, for a new generation of shoppers, that experience may soon be gone.
Once-dominant retail giants including Macy’s, JCPenney, Kohl’s, and Saks have enacted mass store closures in recent years, shrinking their physical footprints as consumer habits shift and financial pressures mount.
Now, another significant round of closures is coming for a company with nearly 159 years of history.
Saks Global announces sweeping changes
Saks Global has revealed a massive list of upcoming changes across its business, as it navigates Chapter 11 bankruptcy protection. The company says it aims to sharpen its focus on luxury customers, strengthen brand partner relationships, and prioritize full-price selling to achieve profitable, sustainable growth.
“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,” said Saks Global CEO Geoffroy van Raemdonck in a press release.
“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.”
Saks Global announces more store closures.
Saks Fifth Avenue and Neiman Marcus close stores
As part of its optimization effort, Saks Global will close eight Saks Fifth Avenue stores and one Neiman Marcus location, according to a company press release. All nine stores will continue operating through April 2026.
After the closures, the company will be left with 25 Saks Fifth Avenue stores, 35 Neiman Marcus locations, and two Bergdorf Goodman units.
Saks Fifth Avenue stores closing
- The Summit: Birmingham, Alabama
- Polaris Fashion Place: Columbus, Ohio
- American Dream: East Rutherford, New Jersey
- Shops at Canal Place: New Orleans, Louisiana
- Bala Plaza: Philadelphia, Pennsylvania
- Biltmore Fashion Park: Phoenix, Arizona
- Stony Point Fashion Park: Richmond, Virginia
- Utica Square: Tulsa, Oklahoma
Neiman Marcus location closing
- Copley Place: Boston, Massachusetts
Most Fifth Avenue Clubs to shut down
Saks is also shutting down 14 standalone Fifth Avenue Club personal styling locations in February. The company plans to keep only three locations in markets it believes present stronger growth opportunities, according to a company press release.
Fifth Avenue Clubs closing
- Rancho Santa Fe: Rancho Santa Fe, California
- Menlo Park: Menlo Park, California
- Santa Barbara: Santa Barbara, California
- Denver: Denver, Colorado
- St. Petersburg: St. Petersburg, Florida
- Orlando: Orlando, Florida
- Savannah: Savannah, Georgia
- Charlotte: Charlotte, North Carolina
- Pittsburgh: Pittsburgh, Pennsylvania
- Charleston: Charleston, South Carolina
- Nashville: Nashville, Tennessee
- Austin: Austin, Texas
- Fort Worth: Fort Worth, Texas
- Bellevue: Bellevue, Washington
Fifth Avenue Clubs remaining open
- Indianapolis: Indianapolis, Indiana
- Honolulu: Honolulu, Hawaii
- Palm Beach: Opening fall 2026 in Palm Beach, Florida
Horchow website transition
Saks will also close the Horchow website on February 19, transitioning its luxury home assortment to NeimanMarcus.com as part of a broader consolidation of operations across merchandising, marketing, and technology.
Saks’ financial struggles behind the restructuring
Saks Global finalized its $2.7 billion acquisition of Neiman Marcus in December 2024, just months after spinning off as an independent company. The deal added Neiman Marcus and Bergdorf Goodman to its portfolio.
However, weakening luxury demand, tariff pressures, and acquisition-related costs have weighed heavily on the company.
More Store Closures:
- 62-year-old retail chain gets lifeline after store closures
- Global toy retailer suspends online operations, closes stores
- Formerly bankrupt retail chain announces new round of closures
In January 2026, Saks filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas, citing debt from its Neiman Marcus acquisition and vendor payment issues.
The company secured about $1.75 billion in financing to continue operations during its restructuring.
Saks Global timeline
- Leadership change: Richard Baker assumes the roles of CEO and executive chairman in January 2026, following Marc Metrick’s departure, Saks Global confirms.
- Chapter 11 bankruptcy: Saks Global initiates a court-supervised restructuring, the company indicates.
- Saks OFF 5th closures: About 57 stores are closing nationwide, alongside an online liquidation launched January 30, according to a press release.
- Amazon breakup: The company ended its luxury e-commerce partnership in late January 2026, less than two years after its 2024 launch, Reuters reported.
- Additional action: Some Saks Fifth Avenue, Neiman Marcus, and Fifth Avenue Club locations will close, in addition to the Horchow transition, Saks Global says.
Saks Global’s financial struggles
In its last reported earnings in October 2025, Saks Global’s revenue fell more than 13% year over year to $1.6 billion in the second quarter, missing its own expectations. Net loss also rose by more than 6%.
Former CEO Metrick attributed the decline partially to inventory challenges. The company’s ending inventories were $1.9 billion, down from $2.1 billion the previous quarter, according to Retail Dive. Revenue dropped nearly 16%, while net losses increased by 38%.
“We believe the capital structure remains unsustainable, and a continued free operating cash flow (FOCF) deficit is likely to pressure liquidity over the next 12 months,” said S&P Global Analysts in September 2025, as reported by SGB Media.
What retail industry analysts say about Saks Global’s decline
Not all analysts believe Saks’ struggles reflect broader issues within the department store model.
“Saks Global did not fail because department stores are broken,” said GlobalData Retail Managing Director and Retail Analyst Neil Saunders in a LinkedIn post in January 2026. “It failed because it broke its own business model.”
Others argue that the company’s recent streamlining efforts could help stabilize its business going forward.
Fortune Retail and Leadership Expert Phil Wahba noted in January 2026 that competitors such as Macy’s, Bloomingdale’s, Nordstrom, Belk, and Dillard’s “have improved customer service, renovated stores, and stocked ample and new merchandise.”
“A strong business boosts the value of their underlying real estate,” Wahba added.
Meanwhile, broader industry headwinds remain. McKinsey & Company’s State of Fashion 2026 Report projects low-single-digit growth for the global fashion industry in 2026. Macroeconomic volatility and tariff pressures are expected to continue shaping value-conscious consumer behavior, particularly in the U.S., where consumer sentiment remained low throughout 2025.
“In the end, 2026 will likely be another year of dislocation for fashion companies,” said McKinsey & Company Fashion Retail Analysts.