Massachusetts Loses Its Last Saks OFF 5TH Outlets as Parent Company Shuts Down Over 55 Stores Nationwide
The era of discount luxury shopping at Saks OFF 5TH is coming to an end in Massachusetts. The retailer's parent company, Saks Global, announced Thursday it will shutter more than 55 stores across its off-price division, eliminating the state's only two locations at Wrentham Village Premium Outlets and The Outlets at Assembly Row in Somerville.
Closing sales are set to begin this Saturday at most affected stores, the company stated, with online liquidation already underway at saksoff5th.com—a site now being phased out. Gift cards will be honored through February 14, and standard return policies will apply for purchases made prior to the closing sales.
This move follows Saks Global's Chapter 11 bankruptcy filing earlier this month, a culmination of financial pressures that have been building for over a year. The company, which also operates Bergdorf Goodman, has been grappling with the heavy debt load from its $2.65 billion acquisition of rival Neiman Marcus approximately a year ago. That strategic bet, intended to consolidate the high-end market, now appears to have backfired amid a perfect storm of economic headwinds.
"Following a thorough review of its off-price business, Saks Global made the strategic decision to close the majority of Saks OFF 5TH retail locations and the remaining Last Call stores," a company spokesperson said in the announcement.
The retail landscape for luxury and off-price goods has shifted dramatically. Analysts point to intensified competition from both direct-to-consumer online platforms and high-end brands expanding their own physical footprints. Simultaneously, sales of discretionary luxury items have softened as consumers navigate persistent inflation and global economic uncertainty. This challenging environment has triggered a wave of retail bankruptcies, recently including names like Claire's and fabric-and-crafts retailer Joann.
Under new leadership, Saks Global is now focused on restructuring its debt and has vowed to fulfill obligations to suppliers and employees. The company's portfolio currently includes approximately 33 Saks Fifth Avenue, 36 Neiman Marcus, and two Bergdorf Goodman stores, alongside the roughly 70 Saks OFF 5TH locations now slated for mass closure.
Reader Reactions
Michael R., Retail Analyst from Boston: "This is a predictable consolidation. The off-price model for luxury goods has been squeezed from both sides. It's a strategic retreat to preserve the core Saks and Neiman Marcus brand equity, which is their real asset."
Sarah Chen, Somerville Resident: "It's really disappointing. Assembly Row loses a great option for finding designer pieces without the crazy markup. It felt like a hidden gem. This leaves a big hole for bargain hunters in the area."
David P., Former Supplier: "Frankly, it's about time they faced the music. They've been struggling to pay vendors for months since that Neiman Marcus deal. This bankruptcy and the store closures are the direct result of reckless corporate debt and overexpansion. Regular employees and small suppliers are the ones who pay the price."
Linda G., Frequent Shopper at Wrentham: "I'm heartbroken! Where am I supposed to go now for those unexpected deals? The closing sale is going to be a madhouse, but I'll definitely be there. It's the end of an era for outlet shopping."
The Sun Chronicle is a news partner of MassLive.com. To subscribe to The Sun Chronicle, click here.