Luxury Retailer's Discount Arm Collapses: Saks to Shutter All Neiman Marcus Last Call Stores, Majority of Saks Off 5th
The discount landscape for luxury goods is undergoing a seismic shift. Saks Global Enterprises, the powerhouse behind Saks Fifth Avenue and Neiman Marcus, announced today a sweeping closure of its off-price store networks. The move will see the complete shuttering of all Neiman Marcus Last Call stores and the majority of its Saks Off 5th locations, a stark consequence of the company's recent bankruptcy filing and its challenging integration of Neiman Marcus.
The decision, confirmed in a corporate press release, follows Saks Global's Chapter 11 filing just weeks ago. Industry analysts point to the company's ambitious $2.7 billion merger with Neiman Marcus in 2024 as a key factor in its current financial strain, creating a debt burden that has forced a strategic reassessment.
"As we advance on Saks Global’s transformation, we are taking decisive steps to realign our business to better serve our luxury customers and drive full-price selling across our core luxury businesses," stated Saks Global CEO Geoffrey van Raemdonck. He emphasized that the closures would position the company for "long-term growth and value creation."
According to details from Retail TouchPoints, five Saks Off 5th stores are slated for closure, with none located in Pennsylvania. All five existing Neiman Marcus Last Call stores will also close. The company confirmed that the saksoff5th.com e-commerce site will be taken offline, with liquidation sales to be held both online and at select physical locations.
The retreat from the off-price market underscores a broader trend of luxury conglomerates consolidating operations to protect brand prestige and margins in an uncertain economic climate. It leaves a significant gap in the market for high-end designer goods at discounted prices, potentially benefiting competitors like Nordstrom Rack and online resale platforms.
Market Reaction & Analyst Commentary
Michael Torres, Retail Analyst at Brandon Capital: "This is a painful but necessary contraction. The merger created unsustainable leverage. By shedding these discount channels, Saks Global is betting everything on the resilience of the full-price luxury consumer. It's a high-stakes gamble on top-tier spending power."
Sarah Chen, Former Buyer for a Last Call Store: "It's heartbreaking. These stores were a gateway for so many aspiring customers to own a piece of luxury. The human cost—the colleagues I worked with for years—is immense. The CEO's 'sincere thanks' feels hollow when people are losing their livelihoods."
David P. Miller, Host of 'The Retail Pulse' Podcast: "The off-price model for true luxury was always a tricky proposition. It can dilute the brand aura. This move is Saks finally admitting that the math of selling a $5,000 dress at 70% off, while also managing massive debt from the Neiman deal, simply doesn't work."
Rebecca Vance, a frequent Last Call shopper in Orlando: "This is an absolute travesty! Where am I supposed to go now? The full-price stores are out of reach. This isn't a 'transformation'; it's corporate greed, cutting off access to everyday people so their wealthy clients don't have to rub shoulders with us. Disgusting."
This report is based on original filings and company announcements.