What: Amid falling revenue and strained vendor relationships, Saks Global is undergoing further restructuring and cost-cutting, raising questions about its growth strategy, luxury positioning, and long-term viability.

Why it is important: The company’s struggles underscore how operational missteps, debt, and a lack of clear differentiation can threaten even the most established department store brands.

Saks Global has initiated its third round of layoffs, eliminating 90 positions as part of a broader effort to address declining sales, mounting debt, and persistent vendor payment issues following its merger with Neiman Marcus. The company’s Q1 revenue fell nearly 16% year over year, and multiple vendors have voiced concerns over overdue payments and the reliability of Saks Global as a partner. Industry experts have questioned the effectiveness of recent growth strategies, including partnerships with Amazon and Costco and the push for AI-enabled personalization, arguing that these moves may dilute Saks’ luxury positioning rather than strengthen it. Analysts warn that the company’s reliance on price increases, rather than customer growth or enhanced experience, leaves it vulnerable as its core customer base ages and aspirational shoppers face economic pressures. While a recent $600 million capital raise provides a temporary lifeline, skepticism remains about Saks Global’s ability to achieve a sustainable turnaround without further restructuring or asset sales. The situation highlights the critical need for renewed customer-centricity, vendor trust, and clear brand differentiation in the luxury department store sector.

IADS Notes:

Saks Global’s third round of layoffs, ongoing vendor payment issues, and mounting financial pressures are emblematic of the deep challenges facing large-scale luxury retail consolidation. As reported by Forbes (February 2025), the company’s post-merger restructuring has included closing Neiman Marcus’s headquarters, consolidating operations, and implementing controversial 90-day vendor payment terms, which have sparked significant industry backlash and strained supplier relationships (BoF, February 2025; WWD, March–April 2025). Sales declines of 16% at Saks and 10% at Neiman Marcus, highlighted by BoF (July 2025), underscore the operational and competitive difficulties of integrating legacy brands while maintaining customer experience and brand equity. Despite a recent $600 million capital raise and a $350 million financing commitment (Vogue Business, June 2025), analysts remain skeptical about the company’s ability to achieve a sustainable turnaround without further restructuring or asset sales. The situation illustrates the risks of aggressive expansion, the importance of restoring vendor trust, and the need for a renewed focus on customer-centricity and curated experiences to regain market relevance in a contracting department store sector.

Saks Global’s struggle: layoffs, debt and the fight to stay relevant