Saks to Shut Most Off 5th, Last Call Discount Stores
New York – Saks Global, the parent company of Saks Off 5th and Last Call, is set to close numerous locations as part of a strategic shift following its recent bankruptcy filing. The company announced the closure of nearly 60 Off 5th locations and five Last Call stores, with only 12 Off 5th locations remaining operational.
Focus on Luxury Retail
The decision to shutter discount stores marks a significant change for Saks Global. The company is redirecting its resources towards luxury retail, including Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. This strategic pivot comes after the company struggled under the weight of a heavy debt load, worsened by its acquisition of Neiman Marcus in 2024. The financial issues date back even before this purchase.
Reasons for the Closure
- Shift to luxury offerings
- Decline in consumer interest in luxury department stores
- Increased purchasing from brands directly, bypassing middlemen
In a press release, Saks Global stated that the remaining Off 5th locations would primarily serve as platforms for selling leftover inventory from its luxury brands. The company will no longer focus on purchasing merchandise specifically for Off 5th.
Sales Timeline and Gift Card Policy
Closing sales for selected Off 5th stores will begin on January 31, with all Last Call locations following suit. The Saks Off 5th website will kick off its closing sale a day earlier, on January 30. Existing gift cards will remain valid until Saturday, February 14, in stores, and online until Friday, February 13.
This restructuring highlights the evolving landscape of retail, particularly in the luxury sector, as consumers increasingly seek direct access to brands.
