Saks reportedly ends e-commerce partnership with Amazon

Following its bankruptcy filing, Saks Global is believed to be ending its relationship with Amazon, and is set to wind down its storefront on the marketplace giant.

According to sources for Reuters, the decision to bring the ‘Saks on Amazon’ concept to a halt comes as the luxury retail group looks to focus on parts of the business where there is more opportunity for growth.

It is believed that the Amazon storefront “saw limited brand participation”, with the company deciding that it was better to drive traffic to its own e-commerce site. Saks declined to comment on the matter.

A spokesperson for Amazon told Reuters: “Beyond the Saks experience, the Amazon luxury store continues to offer a wide selection of high-end designer styles, and we’re adding more luxury brands regularly.”

Tensions between the two partners began mounting after Amazon opposed Saks’ bankruptcy plans, which were then later approved by a Texas court. Amazon argued that the financing proposals put at risk its investment in the retail group and would only add to the debt burden it already faces.

Amazon provided Saks with 475 million dollars to help finalise its 2.65 billion dollar acquisition of Neiman Marcus Group in 2024. In exchange, Saks agreed to sell products via Amazon, in turn launching a digital storefront offering a variety of luxury brands through the marketplace.

It had been unclear until now whether Saks was to exercise its right under Chapter 11 to reject the contract with Amazon, Reuters said.