Saks Global has announced it will close most of its Saks Off 5th and Last Call stores following its bankruptcy filing earlier this month. The company plans to shut down nearly 60 Off 5th locations and five Last Call storefronts, leaving only 12 Off 5th stores in operation.
The closure of these discount stores marks a major shift in Saks Global’s business strategy as it refocuses on its luxury retail operations at Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. This move comes after the company struggled under a heavy debt load, exacerbated by its acquisition of Neiman Marcus in 2024. Prior to the acquisition, Saks Global was already facing financial challenges.
Shifting Focus to Luxury Retail
In a press release on Thursday, Saks Global revealed that the remaining Off 5th stores will primarily serve as outlets for residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. As a result, the company will no longer purchase merchandise directly for Saks Off 5th. This strategic change is designed to streamline operations and align with the growing consumer preference for luxury brands sold directly through their stores.
The shift also reflects changing consumer behavior. Shoppers are increasingly turning to luxury retailers for their purchases, bypassing middlemen like department stores, which has placed additional financial strain on Saks Global.
Closing Sales and Gift Card Information
Saks Global has confirmed that closing sales will begin on January 31 for select Saks Off 5th stores and all Last Call locations. The Saks Off 5th website will also begin its liquidation sale on January 30.
Customers with existing gift cards can use them in-store until Saturday, February 14, and online until Friday, February 13. After these dates, the gift cards will no longer be valid, according to the company’s website.
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With Saks Global streamlining its focus on luxury goods and shutting down discount outlets, it’s clear that the company is attempting to restructure and adapt to changing market conditions. The upcoming store closures are a significant development for both the company and its consumers.
