Bergdorf Goodman is unaffected by the latest change to the corporation’s retail footprint. Image credit: Saks Global U.S. holding company Saks Global is making further updates to its operations.
Effective immediately, its leaders announced plans to shut down 12 Saks Fifth Avenue and three Neiman Marcus locations. The closures are intended to streamline the business in select markets.
“This strategic optimization is part of our ongoing transformation and rooted in our long-term view of our business," said Geoffroy van Raemdonck, CEO of Saks Global, in a statement.
“Our go-forward store portfolio will comprise the best performing and most desirable locations in markets with the highest concentration of luxury customers, enabling us to deepen loyalty and drive sustainable growth,” Mr. van Raemdonck said. “With a refined footprint, we are creating a stronger platform for our brand partners and an even more compelling customer experience as we focus on investing in the luxury experience, sharpening the differentiation of our coveted banners and fully leveraging our prime owned and other retail locations.”
Next steps
With the closures, Saks Global says it is focusing on desirable markets with high concentrations of affluent, luxury consumers.
Select Saks Fifth Avenue locations in Ohio, Maryland, Illinois, California, Nevada, New York, North Carolina, Texas, Florida, Missouri and Virginia will close as part of the restructuring.
Meanwhile, the business will shutter Neiman Marcus’s stores in Honolulu, Hawaii; Canyon Park, California and White Plains, New York.
With this set of closures, the operator’s portfolio optimization is said to be “largely completed.” Image credit: Saks Global
“We recognize the impact these strategic decisions have on our colleagues and are deeply grateful for their contributions,” said Mr. van Raemdonck, in a statement.
“We are supporting the impacted teams as much as we can through this transition and will provide transfer opportunities where available.”
The move closely follows the shutdown of the majority of Saks’ standalone Fifth Avenue Clubs (see story), most Saks Off 5th locations, all Last Call storefronts (see story) and dozens of Saks Fifth Avenue and Neiman Marcus department stores as the group restructures under Chapter 11 bankruptcy protection (see story).