Saks Global to close 15 more stores as it nears end of footprint optimisation efforts

Saks Global has confirmed a further 15 store closures as it continues to enact a restructuring plan associated with ongoing bankruptcy proceedings. The luxury retail group is due to close 12 additional Saks Fifth Avenue stores and three Neiman Marcus locations.

This latest round of closures follows a first phase initiated in February, when eight Saks Fifth sites and one Neiman Marcus location closed. The business has also been winding down its off-price division, first initiating plans in January to shutter around 57 Saks Off 5th locations.

The recent announcement brings Saks Global closer to the end of its footprint optimisation efforts, yet the company said it is continuing to engage with landlords towards final decisions on its “go-forward” network of stores. No changes are currently being made to the Bergdorf Goodman portfolio, while the e-commerce of Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman are also operating as usual.

In a statement, Geoffroy van Raemdonck, CEO of Saks Global, said the company recognised the “impact these strategic decisions have on our colleagues and are deeply grateful for their contributions”. “We are supporting the impacted teams as much as we can through this transition and will provide transfer opportunities where available," van Raemdonck added.

Moving forward, the group said select markets will be streamlined to include either a Saks Fifth Avenue or Neiman Marcus store based on unique regional considerations. Both banners will continue to operate in leading luxury destinations where growth opportunities are identified, honouring the “heritage of each brand while positioning itself to lead multiple segments of the luxury market over the long-term”.

Van Raemdonck said: “With a refined footprint, we are creating a stronger platform for our brand partners and an even more compelling customer experience as we focus on investing in the luxury experience, sharpening the differentiation of our coveted banners and fully leveraging our prime owned and other retail locations."

Saks Global also provided an update on its inventory flow after securing a significant portion of its 1.75 billion dollars in committed capital. The funding has improved the company’s liquidity position allowing for new orders with brand partners, with 500 brands releasing close to 1.3 billion dollars in retail receipts. This accounts for over 80 percent of the inventory the company expects to receive from February through April, with momentum expected to continue.