What: Saks Global announces the closure of its Saks Off 5th flagship on 57th Street in New York City, citing a building conversion to residential use and ongoing strategic restructuring of its retail portfolio.

Why it is important: This move demonstrates how Saks Global is responding to industry pressures by consolidating locations and focusing on high-performing assets to drive future growth.

Saks Off 5th will vacate its 57th Street Manhattan location by December 2025, as the building is being converted from commercial to residential use. The 47,000-square-foot, two-level store—opened in 2016 just blocks from Saks Fifth Avenue and Bloomingdale’s—was once considered a major growth vehicle for Saks Global in the off-price segment. The closure comes amid ongoing construction and is part of Saks Global’s broader strategy to optimize its retail footprint following its merger with Neiman Marcus. The company has been actively consolidating its store network, reducing costs, and shifting focus to high-performing locations and digital channels. This decision also reflects the changing dynamics of New York’s urban retail property market, where large-format retail is increasingly challenged by redevelopment and shifting consumer behaviors. Saks Off 5th will continue to serve customers at other tri-state locations and online.

IADS Notes:

The closure of Saks Off 5th’s 57th Street location is emblematic of Saks Global’s ongoing post-merger consolidation and network optimization. WWD (April 2025) reported on significant workforce reductions and operational restructuring following the $2.7 billion Neiman Marcus merger in December 2024, targeting $500 million in annual cost savings . BoF (February 2025) highlighted a 5% reduction in the US corporate workforce, reflecting the complexities of luxury retail integration . WWD (February 2025) detailed the closure of historic locations and a shift toward optimizing store networks and international expansion . The Sun (January 2025) noted the closure of Saks Fifth Avenue’s Palm Beach store, underscoring the trend of urban retail property transformation . WWD (April 2025) described the reset of Saks Global’s buying organization, with a 14% reduction in the corporate workforce and a 25% reduction in brand partnerships . Inside Retail (July 2025) observed that these changes, along with leadership transitions and a renewed focus on local relevancy, are critical for Saks Global’s long-term profitability .

Saks Off 5th Vacating 57th Street