Saks to sharpen luxury focus as it partially winds down off-price business

Saks Global is continuing to roll out changes to its business amid a review of its operations as part of ongoing bankruptcy proceedings. In its latest announcement, the US retail group confirmed plans to partially wind down its off-price category and close the majority of its Saks Off 5th retail locations, as well as the five remaining Last Call stores.

The move comes as the company seeks to sharpen its focus on luxury retail and full-price selling, with the decision a direct result of an evaluation into its operational footprint. By refocusing its efforts, Saks Global hopes to realign the business to better serve luxury customers, its CEO, Geoffroy van Raemdonck, said in a release.

He added: "With these actions, we will be well positioned to seize the greatest opportunities for long-term growth and value creation. We sincerely thank our Saks Off 5th and Last Call colleagues for the important role they have played in serving our loyal customers."

Starting January 31, a total of 34 Saks Off 5th locations will shutter. A second round of closures will follow on February 2, impacting 23 stores. A total of 12 locations will remain open, and will instead serve as a selling channel for residual inventory from the Saks Global portfolio, in place of the company purchasing directly for off-price retail.

Saks Off 5th’s e-commerce site, a separate legal entity from Saks Global, will also wind down operations. A closing sale will commence January 30. The e-commerce and stores of the company’s luxury-focused retail brands, Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman, remain open.