- Saks Global is keeping open three luxury stores after earlier closure plans.
- Simon Property, the landlord, likely provided rent concessions to avert vacancies.
- The reversal reflects a focus on profitable high-end retail markets.
- Saks Global continues to restructure as part of its Chapter 11 process.
Reversal on Planned Closures
According to CoStar, Saks Global will keep three luxury stores it had planned to close after talks with landlord Simon Property. The affected locations include Saks Fifth Avenue stores in Palm Desert, California, and Sarasota, Florida. The decision also keeps the Neiman Marcus store in White Plains, New York, open.
Earlier, Saks Global planned to close these stores in May as part of a broader effort. The company aimed to exit roughly two dozen Saks Fifth Avenue and Neiman Marcus locations.
Landlord Leverage and Negotiations
Retail consultant Rudy Milian said Chapter 11 gives retailers leverage in lease negotiations. Retailers often announce more closures to secure better terms. In this case, Simon Property owns the affected malls and likely offered rent concessions. These deals helped keep the stores open while protecting property values and avoiding vacancies. This type of landlord-tenant negotiation comes as broader retail strategies continue to evolve, with some operators also pulling back from large-scale experiential bets in key markets.
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Strategic Footprint for Luxury Shoppers
Saks Global is prioritizing stores in markets with dense concentrations of luxury shoppers. The Westchester mall in White Plains, New York, is cited as a premier luxury destination, featuring tenants like Burberry, Gucci, Louis Vuitton, and Tiffany & Co. The decision to keep these locations aligns with Saks Global’s strategy to operate in profitable, high-traffic luxury hubs.
Ongoing Bankruptcy Restructuring
The move comes as part of Saks Global’s ongoing restructuring under Chapter 11. The company continues to negotiate with landlords, including Simon Property, which is Saks Global’s largest landlord with about 75 leases. Meanwhile, disputes remain over certain store locations, with Simon Property seeking to terminate leases in some cases, while Saks Global fights to retain the ability to sell leases and repay creditors.
