Saks Fifth Avenue to Permanently Close Iconic New Orleans Canal Place Store
Saks Fifth Avenue will permanently close its iconic store at Canal Place in New Orleans as its parent company, Saks Global, downsizes its operations. The decision comes following Saks Global’s Chapter 11 bankruptcy filing last month, which prompted plans to close eight Saks Fifth Avenue stores and one Neiman Marcus across the country.
Permanently Closing Canal Place Location
The Canal Place store will remain operational until the end of April 2024. Commenting on the closure, spokesperson Maddie Hayman cited multiple factors influencing the decision, including performance and lease economics. This closure reflects the ongoing evaluation of Saks Global’s physical footprint.
Impact on the Local Retail Landscape
The exit of Saks from Canal Place is a significant setback for retailers along Canal Street. Matt Brown, General Manager of Canal Place, noted that management had been preparing for this eventuality, having proactively engaged with potential new tenants to continue attracting high-quality retailers to the area.
- Closure Date: End of April 2024
- Factor for Closure: Performance and lease economics
- Bankruptcy Status: Chapter 11 filing last month
This strategic retreat comes amid broader challenges for downtown retail, as evidenced by recent closures, including Adler’s jewellery store, which shut down after more than 120 years of operation. While some may view Saks’ departure as detrimental to local commerce, businessman David Rubenstein emphasized that the closure should be understood within the context of corporate restructuring rather than as a commentary on the New Orleans market itself.
Canal Place Development History
The Canal Place complex, developed in phases during the early 1980s, includes an office tower, shops, and a hotel. O’Connor Capital Partners, which purchased the complex in 2017, stated that sales at Canal Place are still robust. They reassured stakeholders that the closure of Saks Fifth Avenue stems from the company’s financial challenges rather than the retail environment in New Orleans.
Saks Global’s Future After Closure
According to Saks Global’s announcement, the closures are part of a broader plan to focus on profitable locations with growth potential. Following these changes, Saks will have 25 remaining Saks Fifth Avenue stores and 35 Neiman Marcus stores. This shakeup follows a series of store closures, including Saks OFF 5th and Last Call locations.
Next Steps for Saks Global
Saks Global intends to determine which locations to retain based on specific performance metrics and economics. CEO Geoffroy van Raemdonck expressed a commitment to reinforcing the luxury brands’ market positions while setting the stage for future growth.
In summary, the closure of Saks Fifth Avenue at Canal Place marks a pivotal moment for both the luxury department store and the New Orleans retail scene, highlighting ongoing economic challenges and shifts in consumer spending patterns.
