What: Saks Fifth Avenue brand expands to Costco through Centric Brands licensing agreement, initially launching men's apparel with plans to extend into women's merchandise, while contemporary vendors express concerns about brand dilution.

Why it is important: This strategic licensing move demonstrates how luxury retail brands are exploring new revenue streams through controlled brand extensions, even as they maintain premium positioning in their core business.

The Saks Fifth Avenue brand is set to enter Costco through a licensing agreement with Centric Brands, initially focusing on men's apparel with potential expansion into women's merchandise. The deal emerges from Saks Global's joint venture with Authentic Brands Group, called Authentic Luxury Group, which was formed to grow luxury brands. Centric Brands, whose portfolio includes established names like Joe's Jeans, Buffalo, Hervé Léger, and Izod, will oversee the development and production of the Saks-branded merchandise for Costco. This expansion has sparked concern among some contemporary vendors who currently sell to Saks stores, with one vendor expressing worry about the impact on the retailer's prestigious reputation and questioning whether customers will continue to shop high-end brands at Saks when the nameplate appears at Costco. The move comes as Saks Global undergoes broader transformation, including recent partnerships with Amazon for designer fashion and significant changes to its vendor relationships.

IADS Notes: The Saks Fifth Avenue brand's expansion to Costco through Centric Brands licensing comes amid significant transformation at Saks Global. In February 2025, the company announced a strategic reset of its distribution model, including a 25% reduction in brand partnerships . This was followed by May 2025's announcement to cut up to 600 vendors while increasing focus on controlled brands through partnerships like the Authentic Luxury Group . The timing is particularly notable as Saks simultaneously expands its presence on Amazon through "walled garden" marketplaces , highlighting the complex balance between maintaining luxury positioning and pursuing new distribution channels. This multi-channel approach reflects broader changes in luxury retail, where traditional boundaries between premium and mass-market distribution are being redefined through strategic brand licensing and controlled environments.

Saks Fifth Avenue brand heads to Costco