Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
Saks Global has announced it will shut a further 15 luxury department stores in a bid to stabilise its retail footprint and improve liquidity.
It comes as inventory flow has increased after more than 500 brands resumed shipping to the retailer. This has released approximately $1.3bn (£970m) in retail receipts, representing more than 80% of the inventory expected between February and April.
The group will close 12 Saks Fifth Avenue and three Neiman Marcus locations following an initial round of exits announced last month.
According to the company, the closures would allow a sharper focus on high-performing markets with a high concentration of luxury customers. Executives intend to use the refined footprint to drive full-price selling and enhance brand equity for partners.
Saks Global has improved its liquidity position through access to approximately $825m (£613m) of $1.75bn (£1.3bn) in committed capital. The firm has reached or nearly reached agreements with more than 175 brands across all categories to date.
The restructuring will not affect the Bergdorf Goodman operational footprint, and impacted employees will be offered transfer opportunities where available as the company transitions to its new store network.
Geoffroy van Raemdonck, chief executive of Saks Global, said: “This strategic optimisation is part of our ongoing transformation and rooted in our long-term view of our business.
“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.”
He added: “We recognise the impact these strategic decisions have on our colleagues and are deeply grateful for their contributions. We are supporting the impacted teams as much as we can through this transition and will provide transfer opportunities where available.”
