What: Saks Global executive chairman Richard Baker confirms plans to eliminate 500-600 brands while increasing focus on controlled brands through strategic partnerships, aiming to achieve 20% of sales from higher-margin private label products.

Why it is important: This strategic shift demonstrates how consolidated luxury retailers are reimagining their business models, balancing vendor optimisation with margin enhancement through controlled brands, while maintaining their position as the dominant player with 60% of US luxury fashion sales.

Saks Global's transformation strategy takes a significant step forward as Richard Baker outlines plans to streamline the company's vendor matrix from 2,660 brands. This restructuring aims to optimise relationships with remaining vendors while developing controlled brands through partnerships like the Authentic Luxury Group joint venture, which will manage brands including Barneys New York and Judith Leiber Couture.

The initiative extends beyond traditional retail, with Baker announcing plans to expand the company's Amazon presence through "walled garden" marketplaces across India, Japan, Great Britain, Europe, and the Middle East. This digital expansion is complemented by ventures into entertainment and hospitality, including a Barneys-themed show development with Amazon and luxury residential projects in international markets.

The strategy targets $600 million in annual synergies, with controlled brands expected to contribute significantly through enhanced margins. Baker projects that achieving 20% of sales from these higher-margin products could generate an additional $400 million in value for the company.

IADS Notes: This vendor reduction strategy builds upon Saks Global's comprehensive transformation plan announced in February 2025, which initially targeted a 25% reduction in brand partnerships. The expansion into controlled brands through Authentic Luxury Group represents a strategic evolution in the company's business model. The announcement of global Amazon marketplace expansion demonstrates the company's commitment to digital innovation, while the organisational restructuring shows how Saks Global is balancing operational efficiency with strategic growth initiatives.

Saks Global to cut up to 600 vendors