Saks Off Fifth to close most stores as Saks Global restructures

Saks Global is moving to drastically shrink saks off fifth, announcing plans to close the majority of its off-price locations and wind down its dedicated e-commerce operation. The decision marks a strategic retreat from a business that had become a persistent drag on profitability, while the parent company refocuses on its full-price luxury banners.

The pullback is immediate and consumer-facing: liquidation activity is starting, store counts are being cut to a small footprint, and online operations are being wound down as inventory is redirected to support the remaining outlets.

Why Saks Off Fifth is shrinking

Saks Global’s restructuring plan centers on cutting losses and consolidating around full-price luxury retail. The off-price division had been on track to post sizable losses, and leadership has framed the closures as a way to simplify the business and prioritize the brands with stronger margins and a clearer customer proposition.

In practical terms, the outlet chain’s role is being redefined. Instead of operating as a broad off-price retailer sourcing large amounts of new merchandise, the remaining stores are expected to function mainly as a channel to move excess inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.

What’s closing and what stays open

The scale of the contraction is steep. Saks Global said it will shutter 57 Saks OFF 5TH locations, leaving 12 stores operating. The company is also closing the remaining five Neiman Marcus Last Call outlet stores.

The smaller, “keep open” group is positioned as a kind of pressure valve for the wider luxury organization’s inventory, rather than a growth platform in its own right. For shoppers, that means the surviving stores may increasingly skew toward clearance and overstock rather than the broader, constantly refreshed mix that many customers associate with the off-price model.

Online shutdown and liquidation schedule

The changes extend beyond malls and storefronts. The company is winding down the stand-alone online operation tied to the outlet business, pushing customers toward a closing sale period rather than ongoing online assortment. People searching saks off 5th will see an environment geared toward clearance rather than long-term shopping.

Here are the key dates being communicated around the wind-down and markdown events (times in ET):

Discount levels are expected to vary by location and timing as liquidation ramps, with the deepest markdowns typically arriving later in the cycle—often after selection has thinned.

What it means for shoppers and employees

For shoppers, the near-term experience will be dominated by clearance dynamics: fast-changing inventory, inconsistent sizing runs, and a heavier concentration of final-sale conditions as stores progress through liquidation phases. Returns and loyalty-program handling can also change during closing periods, so customers will want to read posted store terms carefully at checkout.

For employees, closures usually bring a mix of short-notice scheduling changes and transition packages that vary by state and store. Retail restructurings also tend to affect adjacent roles—distribution, store support, and e-commerce operations—especially when an online business is being wound down rather than sold.

What comes next for Saks Global

Saks Global’s strategy is becoming more single-minded: protect and grow the full-price luxury core, use a much smaller outlet footprint to clear excess inventory, and reduce operational complexity. Over the next several weeks, the biggest watch points are (1) the pace of store liquidations, (2) how quickly the online wind-down progresses, and (3) whether any leases are transferred or repurposed for other retail concepts.

For consumers, the immediate takeaway is straightforward: most physical off-price locations under the Saks umbrella are entering their final chapter, and shopping opportunities will increasingly concentrate in a small set of remaining outlets as the broader footprint disappears.

Sources consulted: The Associated Press; Reuters; Saks Global (business update page); Retail Dive; Women’s Wear Daily.