Saks Fifth Avenue to Close 8 Stores in Bankruptcy, Major Metros Largely Unaffected

Key Points

• Saks Fifth Avenue will reduce its footprint to 25 stores as part of Chapter 11 restructuring
• Closures largely spare NYC, Los Angeles, Washington, D.C., and South Florida
• Flagship at 611 Fifth Avenue remains open despite prior $218M property sale

What This Means for Trophy Retail Landlords

Saks’ flagship at 611 Fifth Avenue in Manhattan will continue operating, even after the larger property was sold to Vornado Realty Trust for $218 million in 2025. Preserving prime urban flagships signals continued confidence in top-tier luxury corridors, even as secondary and suburban locations face cuts. For landlords in major gateway markets, the bankruptcy appears to be a footprint optimization rather than a wholesale retreat from luxury retail.

What Foot Traffic Trends Reveal

According to Placer.ai, Neiman Marcus saw a 10.5 percent year-over-year decline in visits in January, while Saks posted a modest 1.2 percent increase. Parent company Hudson's Bay Company acquired Neiman Marcus for $2.7 billion in 2024, and the restructuring will close one Neiman location in Boston. The divergence in foot traffic suggests Saks’ core luxury positioning may be holding up better than some peers, even in a tightening consumer environment.

What This Means for Luxury Retail Strategy

One of the highest-profile closures is at Biltmore Fashion Park in Phoenix, reflecting broader stress in upscale suburban retail nodes. In addition to full-line stores, Saks is winding down 14 Fifth Avenue Club locations and 12 Saks Off 5th stores in suburban markets. CEO Geoffroy van Raemdonck said the goal is to optimize the company’s operational footprint while reinvesting in high-performing markets. For investors, the takeaway is clear. Luxury retail is consolidating around premier urban corridors and dominant regional destinations, while marginal locations face rationalization.