It happened. Just days ago, in mid-January 2026, the retail world watched the other shoe finally drop. Saks Global—the massive umbrella company that was supposed to be the "savior" of high-end retail—filed for Chapter 11 bankruptcy. Honestly, if you’ve been watching the shelves at your local Saks Fifth Avenue or Neiman Marcus lately, you probably aren't shocked. The racks have looked a bit thin. The energy has been... off.
We are talking about a total financial collapse of a conglomerate that includes Saks, Neiman Marcus, and Bergdorf Goodman. This wasn't just a "bad quarter." It was a $2.65 billion bet that went south faster than a winter flight to Palm Beach.
The Messy Reality of the Saks Neiman Marcus Sales Decline
The Saks Neiman Marcus sales decline isn't just one thing. It's a pile-up. In 2025, Saks Global saw its revenue slide by a staggering 13.6%. That is a massive hit for a company that was already carrying billions in debt from the 2024 merger.
Why did people stop buying? Well, for one, the stores couldn't actually get the stuff people wanted. Because Saks was struggling to pay its bills, major fashion houses—we’re talking names like Chanel, Kering (Gucci), and LVMH—started getting nervous. When a department store owes Chanel $137 million and stops paying on time, Chanel stops sending the bags.
It's a death spiral. No bags mean no customers. No customers mean no cash. No cash means no payments to vendors.
👉 See also: Sands Casino Long Island: What Actually Happens Next at the Old Coliseum Site
By the end of 2025, foot traffic at Saks was down nearly 6%. Neiman Marcus wasn't doing much better. While competitors like Bloomingdale's seemed to be holding their own, Saks Global was basically a "slow-melting ice cube," as one analyst put it. They were missing interest payments, including a $100 million bill that came due right at the end of December.
Why the "Powerhouse" Merger Failed
The logic behind putting Saks and Neiman Marcus together seemed sound on paper back in 2024. If you control the three biggest luxury department stores in America, you have leverage, right? Wrong.
- The Debt Trap: The deal was financed with high-yield bonds and a lot of hope. High interest rates in 2025 made that debt impossible to service.
- The Direct-to-Consumer Shift: Why would you go to a department store when you can buy directly from the Prada website or a dedicated Gucci boutique? The "middleman" model is dying.
- The "Aspirational" Shopper Vanished: The ultra-wealthy are still spending, but the people who used to save up for one nice bag a year? They've checked out. Inflation and economic "vibecession" killed that segment.
What's Going on Inside the Stores?
If you walk into the Manhattan flagship today, you’ll see the lights are still on. They secured $1.75 billion in emergency financing to keep the doors open while they try to fix the mess. But the leadership is in a total shakeup. Richard Baker, the guy who architected the whole merger, is out as CEO. Taking his place is Geoffroy van Raemdonck, the former head of Neiman Marcus.
It’s kinda ironic. The guy whose company was "bought" is now running the whole show.
✨ Don't miss: Is The Housing Market About To Crash? What Most People Get Wrong
But the inventory issues are real. Several vendors actually sued the company in late 2025 because they hadn't been paid for hundreds of thousands of dollars in merchandise. This led to "inventory gaps." Basically, the "newness" that luxury shoppers crave just wasn't there. If you’re spending $3,000 on a coat, you don't want last year's leftovers. You want the runway piece.
The Numbers That Hurt
To put the Saks Neiman Marcus sales decline into perspective, look at the holiday season. Between Black Friday and Cyber Monday of 2025, high-end department store transactions fell 10% compared to the year before. Meanwhile, off-price stores (like TJ Maxx or even Saks OFF 5TH) were doing okay.
Shoppers are getting smarter. They are looking at the price hikes—some luxury goods have gone up 20% or 30% in just a few years—and they’re saying "no thanks." They're heading to resale sites like The RealReal or Vestiaire Collective instead. In fact, a 2025 survey found that 60% of luxury consumers in the U.S. now use resale platforms. That’s a huge chunk of change leaving the department store ecosystem.
Is This the End of the Luxury Department Store?
Not necessarily, but the "everything for everyone" model is toast.
🔗 Read more: Neiman Marcus in Manhattan New York: What Really Happened to the Hudson Yards Giant
Saks Global is currently trying to sell off its real estate to stay afloat. They already sold the land under the Neiman Marcus Beverly Hills store for $50 million just to get some quick cash. They might even sell a stake in Bergdorf Goodman.
The industry experts, like those at GlobalData and the Fashion Institute of Technology, suggest that for these stores to survive, they have to stop acting like warehouses for brands. They need to offer something you can’t get on an app. Experiences. Personal styling that actually feels personal. Exclusivity.
Honestly, the Saks Neiman Marcus sales decline is a wake-up call. You can't just buy your way to the top with debt and expect the customers to follow if the service and the selection aren't there.
Actionable Insights for the Modern Luxury Consumer
If you’re a regular shopper at these iconic stores, the bankruptcy filing changes things for you immediately. Here is what you need to know:
- Use Your Gift Cards Now: While Saks says they will honor programs during the restructuring, bankruptcy is unpredictable. Don't let that $500 gift card sit in a drawer.
- Check Return Policies: During Chapter 11, companies often tighten up. Ensure you know the exact window for returns, especially for high-ticket items.
- Monitor Loyalty Points: If you have a massive stash of SaksFirst or Neiman Marcus InCircle points, consider redeeming them for rewards sooner rather than later.
- Expect Sales, But Be Careful: You might see "restructuring sales" as they try to clear old inventory to make room for new, vendor-approved stock. Just remember that "Final Sale" usually means exactly that.
- Diversify Your Shopping: If you're looking for specific luxury brands, consider checking their boutique stores or authorized online retailers to ensure you're getting the current season's inventory.
The landscape is changing. The giants are stumbling. Whether Saks and Neiman Marcus can come out of this as a leaner, better version of themselves is the multi-billion dollar question for 2026.