Saks Global Closings Seen in Toronto, Dallas
Saks Global will close the historic Neiman Marcus flagship in downtown Dallas next month, and could also close its Saks Fifth Avenue flagship in Toronto at 176 Yonge Street.
Regarding the 165,000-square-foot flagship on Yonge and Queen Streets in Toronto, “We have nothing to share,” said a Saks spokesperson. “We don’t comment on rumors.”
However, Saks Global did confirm that Neiman Marcus in Dallas is closing.
“After more than a decade of negotiations, we received a notice from a landlord to terminate our occupancy, forcing us to close the Neiman Marcus Downtown Dallas location effective March 31, 2025,” Saks indicated in a statement Monday. “This location has been a beloved institution in the community for more than a century, and we are disappointed to be losing a piece of Neiman Marcus history. For our impacted team members, transfer opportunities to nearby Neiman Marcus locations will be offered where possible, and those who are eligible will be offered appropriate separation packages.”
Saks Global has a goal to eliminate $500 million in annual costs over the next few years.
Watch on FN
As WWD previously reported, Saks plans to close its store on Worth Avenue in Palm Beach, Fla., next year, and is closely reviewing the Saks and Neiman Marcus store fleets. It’s expected that other stores within the Saks Global portfolio will be closed, though it’s not entirely clear which ones. One possibility is closing either a Saks or a Neiman Marcus in a shopping center where both retail nameplates operate, such as the Houston Galleria, Town Center at Boca Raton, or The Somerset Collection in Troy, Mich., among other locations.
While Saks Global is expected to close stores, it’s possible they convert some Saks or Neiman’s stores to Barneys New York units. Last October, Saks Global and the Authentic Brands Group formed a joint venture called Authentic Luxury Group to grow luxury brands, including Barneys New York, Judith Leiber Couture, Hervé Léger and Vince.
Saks Global recently signed a franchising agreement with Reliance Industries Ltd., the giant Mumbai-based conglomerate, to open Saks Fifth Avenue and Saks Off 5th stores in India. This is the first deal under ALG, the strategic partnership between Saks Global and Authentic Brands Group.
The Saks Fifth Avenue flagship in Toronto opened in February 2016 and marked Saks’ entry into Canada. It was soon followed by two other Saks openings in Canada, at CF Sherway Gardens, also in Toronto, and in the Chinook Centre in Calgary.
The Saks flagship on Yonge Street is connected to Toronto’s Eaton Centre by the PATH underground walkway. The space was carved out of the massive Hudson’s Bay store, which has about 600,000 square feet of space. The two stores have shared a common lobby entrance. Inside the Saks store, there is a Saks Food Hall by Pusateri’s, a Leña Restaurant, a Fifth Avenue Club for personal shopping, a shoe salon, and designer offerings from Prada, Marc Jacobs, Bottega Veneta, Brunello Cucinelli, among other labels.
Saks parent Hudson’s Bay Co. bought the Neiman Marcus Group in December, effectively creating a $10 billion luxury empire in the U.S. Saks Global now includes Neiman Marcus, Bergdorf Goodman, Saks Fifth Avenue and Saks Off 5th. To close the deal, Saks Global, led by executive chairman Richard Baker, pulled together some creative financing involving two tech giants, Amazon and Salesforce, and two apparel industry giants, G-III and Authentic Brands Group. Saks also secured a $2.2 billion bond.
Neiman Marcus in downtown Dallas has operated there for more than a century and long served as the headquarters for the luxury retailer. However, many executives on the Neiman’s team began working remotely during the pandemic and continued to do so in subsequent years, including some senior executives working in New York City.
While an important and historic location, the Dallas flagship has not been a top-volume producer for the Neiman Marcus luxury chain. The Neiman’s unit in Northpark Center, for example, generates much greater volume.
“We’re excited to share plans for a $100 million renovation to reimagine our shopping experience at our NorthPark store, enabling us to offer a new level of luxury fashion and service at one of our premier store locations,” the Saks statement indicated. “Dallas is an important market for us, and we remain highly committed to upholding Neiman Marcus’ legacy there. We see a long-term opportunity to invest in our Dallas shopping experience, and look forward to serving customers at our other locations.”
.
