Saks Shuts Majority of Off 5th and Last Call Discount Stores
The parent company of Saks Off 5th and Last Call, Saks Global, is making significant changes following a recent bankruptcy filing. The company has announced plans to close a majority of its discount store locations to concentrate on its luxury retail sector.
Saks Shuts Majority of Off 5th and Last Call Discount Stores
On Thursday, Saks Global revealed it will close nearly 60 Off 5th locations and five Last Call stores. Only 12 Off 5th stores will remain operational after the closures.
Shift to Luxury Focus
This strategic decision indicates a firm shift towards luxury retail, with Saks Global redirecting its efforts towards its high-end stores, including:
- Saks Fifth Avenue
- Neiman Marcus
- Bergdorf Goodman
The company previously struggled financially, especially after acquiring Neiman Marcus in 2024. Even before the acquisition, Saks Global faced mounting debts and a challenging economic environment.
Changes in Inventory Strategy
Saks Global confirmed that the remaining Off 5th locations will primarily serve as outlets for excess inventory from its luxury brands. The company will cease direct merchandise purchases for Off 5th stores.
Consumer Trends Impacting Sales
Recent trends show a decline in luxury shopping through traditional department stores. Many consumers now prefer to buy directly from brands, adding strain to Saks Global’s operations.
Upcoming Closures and Sales
Closing sales will begin on January 31 for selected Off 5th locations and all Last Call stores. The Saks Off 5th website will commence its closing sale on January 30. Additionally, existing gift cards will be valid only until:
- February 14 (in-store)
- February 13 (online)
These changes mark a pivotal moment for Saks Global as it pivots towards luxury retail, leaving behind much of its discount store operations.
