What: Saks Off 5th will close nine stores in early 2026, focusing on high-performing locations and optimising its retail footprint.

Why it is important: This move reflects a broader trend of luxury retailers optimising store networks and reallocating resources to high-potential locations.

Saks Off 5th, the off-price division of Saks Global, is set to close nine of its 79 stores beginning in January 2026, following a comprehensive review of market dynamics, lease expirations, and customer behaviour. The closures are part of a broader strategy to concentrate on high-performing and high-potential locations, with the company emphasising ongoing investments in these stores to enhance customer experience and drive performance. The decision to vacate the 57th Street Manhattan location was influenced by impending construction and property redevelopment, reflecting the increasing impact of real estate changes on retail strategies. Saks Off 5th is offering transfer opportunities and severance packages to affected employees, demonstrating a commitment to workforce management during this transition. These store closures coincide with recent management changes at Saks Global, including the appointment of Genny Siller as senior vice president and general manager, and the shift of Kim Miller to chief customer officer, following the departure of Emily Essner. The company’s actions underscore a deliberate approach to optimising its store footprint and adapting to evolving market conditions.

IADS Notes: Saks Off 5th’s store closures and the vacating of its 57th Street location mirror Saks Global’s post-merger strategy to rationalise its retail network, as highlighted in WWD (September 2025). These actions are consistent with the closure of other flagship stores, such as Palm Beach (The Sun, January 2025), and reflect a broader industry shift toward consolidating store networks and investing in high-performing sites, as discussed in WWD (February 2025). The operational changes are supported by significant organisational restructuring and leadership transitions reported in WWD (April 2025; October 2025), illustrating Saks Global’s commitment to long-term transformation and efficiency.

Saks Off 5th to close nine stores