Walk down Fifth Avenue in Manhattan and you'll see it. The flags are still flying. The windows are still dressed in that high-octane glamour that defines New York luxury. But if you’ve been scrolling through business news lately, you might be asking: is Saks Fifth Avenue closing?
It's a fair question. Retail is a mess. We’ve seen Barneys vanish. Lord & Taylor is a ghost. Even Neiman Marcus had its brush with the brink. When people see headlines about debt, mergers, and "restructuring," they naturally assume the worst. They think the "Going Out of Business" signs are being printed in a back room somewhere.
Honestly, that’s not what’s happening here. Not even close.
But it is complicated. Saks isn't just a store anymore; it’s a chess piece in a multi-billion dollar game between HBC (Hudson’s Bay Company), Amazon, and Salesforce. To understand why people think Saks is closing—and why they’re mostly wrong—you have to look at the weird way the company has split itself in two and the massive $2.65 billion deal to buy its biggest rival, Neiman Marcus.
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The Neiman Marcus Acquisition: Why It Matters for Your Local Store
The biggest reason people are asking is Saks Fifth Avenue closing right now is the sheer noise surrounding the "Saks Global" deal. In mid-2024, HBC announced it was buying Neiman Marcus Group. This isn't just two stores getting together for a coffee. This is a seismic shift in how luxury works in America.
They’re calling the new entity Saks Global.
When two giants merge, people panic. They think about "redundancies." They think, "Well, if there’s a Saks and a Neiman Marcus in the same mall, one of them has to go, right?"
Actually, the CEO of Saks.com, Marc Metrick, has been pretty vocal about the fact that they aren't looking to shutter stores en masse. The goal of this merger is leverage. They want to be able to talk to brands like Chanel, Gucci, and Louis Vuitton with one massive voice. If you control both Saks and Neiman, you control the luxury gateway to the U.S. consumer.
The Weird Split: Saks.com vs. Saks Fifth Avenue
Here is where it gets confusing for the average shopper. A few years back, Saks did something radical. They split their physical stores and their website into two separate companies.
Saks.com is the "tech" side.
Saks Fifth Avenue (the stores) is the "real estate" side.
Investors love this because websites are worth more on paper than old buildings with high electricity bills. But for the customer, it created some friction. Have you ever tried to return something bought online to a store and had the clerk look at you like you’re from Mars? That’s the "split" in action. While they’ve worked to smooth that out, the financial separation makes the "is Saks Fifth Avenue closing" rumors feel more real because the store side carries more of the traditional retail debt.
Is My Local Saks Off 5th Closing Too?
We can't talk about the flagship without talking about the "off-price" sibling. Saks Off 5th is a different beast entirely. While the main line is focused on $3,000 handbags, Off 5th is chasing the bargain hunter.
Historically, when a department store struggles, they prune the discount branches first. However, HBC has treated Off 5th as a bit of a golden goose during economic downturns. People who used to buy full-price might "trade down" to Off 5th, keeping the ecosystem alive. While individual underperforming locations close every year—that’s just the nature of retail—there is no evidence of a brand-wide shutdown.
Real Estate vs. Retail: The $7 Billion Safety Net
If you want to know if Saks is going away, look at the dirt.
The physical real estate owned by HBC is worth billions. The flagship store in Manhattan alone is often valued at nearly $4 billion. That is a massive safety net. Even if the actual business of selling shoes and perfume hits a rough patch, the company sits on some of the most valuable land on the planet.
Amazon’s involvement in the recent merger also changes the "closing" narrative. Amazon isn't putting money into Saks because they want to close stores. They’re doing it because they want the data. They want to know how wealthy people shop. They want to integrate their logistics (the stuff that makes your Prime packages arrive in five minutes) into the luxury world.
You don't buy a stake in a company just to turn off the lights. You do it to plug into their high-end customer base.
What about the rumors of unpaid vendors?
In early 2024, there were reports from The Wall Street Journal and WWD about some vendors seeing delayed payments from Saks. This is usually the "canary in the coal mine" for retail. When a store stops paying the people who make the clothes, trouble is brewing.
Saks blamed these delays on a temporary liquidity crunch and the logistical nightmare of the corporate split mentioned earlier. Since then, the infusion of cash from the Neiman Marcus deal has acted like a shot of adrenaline. While some smaller designers are still cautious, the major fashion houses haven't pulled their stock. If you see the big names still on the racks, the store is staying open.
The "Death of the Department Store" Narrative
We’ve been hearing that department stores are dead since 1998. It’s the "sky is falling" trope of the business world.
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Yes, Macy’s is closing 150 stores. Yes, Sears is basically a memory. But luxury is different. The person buying a $500 bottle of Creed Aventus perfume wants the experience. They want the marble floors, the heavy glass doors, and the salesperson who knows their name.
Luxury retail is surprisingly resilient. Even when the economy dips, the "top 1%" keep spending. Saks has pivoted to focus on these "power shoppers" rather than trying to please everyone. This niche focus is exactly why they aren't closing. They’ve realized that being smaller and more exclusive is better than being a giant, mediocre warehouse.
Why You Might See "Closing" Signs (The Nuance)
While the brand isn't dying, you might see specific locations disappear. This is where the confusion starts.
Retailers call this "optimizing the footprint." If a Saks in a suburban mall in the Midwest isn't making money, they will close it. In recent years, we’ve seen closures in places like:
- San Francisco (The iconic Men’s store)
- Various underperforming suburban hubs
Closing a store in a dying mall isn't a sign of a company-wide collapse; it’s actually a sign of a healthy business cutting out the "rot" to save the rest of the tree.
The Competition Factor
Saks isn't just fighting the internet; it’s fighting Nordstrom and Bloomingdale's. Nordstrom has excelled at customer service and their "Anniversary Sale" cult following. Bloomingdale's has a younger, trendier vibe.
Saks has decided its lane is "High Luxury." By acquiring Neiman Marcus, they are basically trying to corner that market so they don't have to compete on price anymore. If you own both of the biggest players, you set the rules.
What This Means for You (The Practical Stuff)
If you have a gift card or a bunch of Saks Fifth Avenue rewards points, don't panic. You don't need to rush out and spend them this afternoon.
The company is currently in a phase of expansion through acquisition, not a phase of liquidation. The "Saks Global" era is likely to see more investment in the stores that remain, especially in "top-tier" cities like New York, Beverly Hills, Miami, and Chicago.
If you’re a regular shopper, you might notice some changes in the coming months:
- More Cross-Brand Integration: You might see some Neiman Marcus exclusive brands popping up in Saks, and vice versa.
- Better Tech: Thanks to the Amazon and Salesforce partnership, the website and app should (hopefully) stop glitching.
- Refurbishments: HBC tends to spend money on the "flagship" experiences. Expect the big-city stores to get even fancier.
Final Verdict: Is Saks Fifth Avenue Closing?
The short answer is: No.
The long answer is: The Saks you knew ten years ago is already gone. It’s now a data-driven, luxury-conglomerate-owned tech platform that also happens to have some very beautiful physical storefronts. The "closing" rumors are mostly a byproduct of the massive financial shifts happening behind the scenes as they swallow up Neiman Marcus.
Retail is shifting, but Saks has positioned itself to be the one holding the cards when the dust settles.
Actionable Next Steps for Saks Shoppers
- Check Your Rewards: If you use the SaksFirst credit card, keep an eye on your point valuations. Mergers often lead to "updated" loyalty programs, so use your points if you’ve been hoarding them for years.
- Watch the "Off 5th" Returns: Be careful with returns between the different entities. The split between the online store and physical locations still causes headaches. Always check the return policy on your specific receipt.
- Ignore the Clickbait: If you see a headline saying "RETAIL APOCALYPSE: SAKS IS NEXT," check to see if they are talking about a single store closure or the whole company. Usually, it's just one underperforming mall location.
- Invest in Classics: If you're worried about brand longevity, stick to the "shop-in-shops" like Louis Vuitton or Gucci inside Saks. Those brands often operate their own leases and will be there even if the parent store undergoes further corporate changes.