A POPULAR retailer has reversed its decision to shut down some stores throughout this year.
The move comes after it managed to re-negotiate with several vendors, likely leaving longtime shoppers sighing with relief.
Marc Metrick, CEO of department store company Saks Global, confirmed the change during a meeting with analysts from BMO Capital Markets in June.
Simeon Siegel, managing director at BMO Capital Markets, said in a client note that Saks Global’s closure reversal decision suggests the stores are “already in the best locations and like their existing fleet,” per Retail Dive.
The total Saks Global footprint includes just over 160 locations.
They are 33 Saks Fifth Avenue stores, 86 Saks Off 5th stores, 36 Neiman Marcus stores, five Neiman Marcus Last Call stores, and the Bergdorf Goodman’s flagship store in Manhattan.
Saks Global did not confirm whether or not the Neiman Marcus spot in Dallas, Texas, would be saved now as a result of the new agreement with vendors.
There was significant pushback earlier this year when Saks Global first announced the popular location would shutter.
City leaders worked for weeks trying to save it, as the Neiman Marcus spot had significant history in Dallas and with its people.
Saks Global agreed to have the location operate through the holidays this year.
Talks of turning it into a luxury retail experience, a curated art exhibition, or a fashion event centre are still ongoing.
Saks Global did not immediately respond to a request for more information.
Saks Global’s issues with vendors and suppliers had been going on for some time after reports of several late payments.
Except, Metrick emphasized while speaking with the BMO analysts that most of the vendors have agreed to new terms and that Saks Global is continuing to pay down any “outstanding balances.”
The company recently obtained $350 million in financing commitments.
In the meeting, executives with Saks Global also “expressed confidence in their liquidity,” according to Siegel’s client note.
US braces for '45,000 store closures'
Some 45,000 bricks-and-mortar stores could close in the next five years, experts have warned.
Several major retailers have announced store closures or gone out of business altogether in recent years.
In 2023, chains such as Foot Locker announced plans to close up to 400 outlets by 2026.
While, other well-known retailers like Tuesday Morning and Mitchell Gold + Bob Williams filed for bankruptcy in 2023.
Bed Bath & Beyond has closed all of its brick-and-mortar stores and is now an online-only retailer.
The most affected retailers have been clothing, consumer electronics, sporting goods, hobby, book, music, and home furnishing stores since the start of 2019.
UBS has predicted the total number of retail stores will drop by 45k from 958k to 913k.
Despite that, the report says that certain stores should thrive while others decline.
It said retailers such as Walmart, Costco, Home Depot, and Target, could be among the winners.
“While acknowledging macro volatility, Metrick expressed clear excitement and confidence in his long-term business opportunities, the luxury business at large, and expressed confidence in their liquidity and vendor relationships.”
STILL SHOPPING
Saks Global’s research also found that the luxury consumer is still spending, despite ongoing economic uncertainty.
According to the data obtained by BMO, around a third of the company’s customer base that makes $200,000 or more are not so confident about the economy but are confident about their personal financial situation.
Tariffs, inflation, and overall higher prices are less of a concern for Saks Global’s customers, according to the company’s findings.
Saks Global also told BMO that about 80% of its goods still come from Europe, and it would implement “normal” price increases to offset incurred tariff costs.
MACY’S MOVES
Some department store companies, like Macy’s, are still going through with closure plans.
Macy’s is in the middle of its Bold New Chapter initiative, which will see 150 stores shuttered by the end of 2026.
At least 66 have closed already this year.
This comes as Macy’s opens smaller-format locations and expands its other brands like Bluemercury and Bloomingdales.
Another beloved department store is set to leave a major US city for good at the end of 2025.
JCPenney also closed a slew of stores at the end of May with liquidation sales that lasted until doors closed.
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