What: Saks Global’s ongoing payment delays and restructuring have strained vendor relationships and weakened its competitive position.

Why it is important: Saks Global’s struggles illustrate the importance of maintaining strong supplier relationships during major retail transformations.

Saks Global’s ongoing payment delays and restructuring efforts have intensified scrutiny from vendors and analysts, as the luxury conglomerate struggles to stabilize after its $2.7 billion merger with Neiman Marcus. Despite CEO Marc Metrick’s assurances and a commitment to begin settling overdue invoices in July, many suppliers remain unpaid, with some brands threatening legal action or halting shipments altogether. The introduction of 90-day payment terms and a 25% reduction in vendor partnerships, intended to achieve $500 million in annual cost savings, has disproportionately impacted smaller brands, eroding trust and prompting industry backlash. These operational strains are compounded by a sharp decline in sales—Saks Fifth Avenue and Neiman Marcus both reported double-digit drops—while competitors like Bloomingdale’s and Nordstrom have gained market share by focusing on customer experience and digital innovation. The company’s weakened financial position, reflected in a credit rating downgrade and mounting overdue bills, underscores the risks inherent in large-scale retail consolidation. As Saks Global attempts to navigate these challenges, its ability to restore vendor confidence and operational stability remains uncertain.

IADS Notes:

Throughout 2025, Saks Global’s payment delays and new 90-day terms have triggered significant backlash, particularly among smaller vendors, as reported in February and March. By June, some improvement was noted, but concerns about financial stability and strained supplier relationships persisted. July saw further deterioration, with sales declines and competitors capitalizing on Saks’ operational weaknesses. These developments collectively highlight the complex challenges of post-merger integration, vendor management, and the risks of aggressive cost-cutting in luxury retail.

Saks Global not following through on vendors overdue payments