Key Points
- Saks Fifth Avenue, often simply called Saks, began as a small menswear shop in 1867 and evolved into a luxury retail icon, particularly with its 1924 Fifth Avenue flagship store that helped define high-end fashion in New York City.
- The brand pioneered aspects of modern luxury shopping, such as introducing couture collections to American audiences and launching early e-commerce in 2000, influencing how designer fashion reaches consumers today.
- Recent business shifts include the 2024 acquisition of Neiman Marcus, forming Saks Global, followed by a Chapter 11 bankruptcy filing in January 2026 amid debt challenges, leading to store closures and restructuring.
- Despite controversies around financial stability, Saks remains a go-to for high-end apparel, designer footwear, and couture, with a strong online presence and personalized shopping experiences.
- Evidence suggests Saks has adapted to retail changes, but ongoing debates highlight vulnerabilities in luxury department stores facing e-commerce competition and economic pressures.
Overview of Saks’ Legacy
Saks Fifth Avenue stands as a cornerstone of luxury retail, blending timeless elegance with forward-thinking innovation. From its humble beginnings to its role in shaping Fifth Avenue as a fashion hub, the brand has introduced countless shoppers to designer fashion and high-end apparel. Its flagship store, opened in 1924, symbolized a shift toward accessible yet exclusive luxury, drawing in fashion enthusiasts and setting standards for couture collections worldwide.
Current Business Landscape
In recent years, Saks has navigated significant changes. The 2024 merger with Neiman Marcus created Saks Global, aiming to strengthen its position in luxury e-commerce and retail. However, by early 2026, the company filed for bankruptcy protection to manage debt from the acquisition. This has led to retail restructuring, including store closures in 2024 and beyond, yet core operations continue with a focus on profitable locations and enhanced online returns processes.
Comparisons and Shopping Insights
When stacked against rivals like Neiman Marcus, Saks often appeals to a broader audience with trend-focused selections and competitive sales. Both offer premium designer brands, but Saks emphasizes a seamless luxury shopping experience, from in-store styling to online perks. For shoppers, this means access to top names in designer footwear and high-end apparel, all backed by reliable policies.
Have you ever wondered how one department store could turn a bustling New York avenue into the epicenter of designer fashion? Enter Saks, the luxury department store that started small but dreamed big, reshaping high fashion along the way. From its origins in the 19th century to its current role in a shifting retail landscape, Saks has been more than a shopping destination: it is a symbol of elegance and evolution.
Picture this: in 1867, a young Andrew Saks opens a modest menswear shop in Washington, D.C., using earnings from his newspaper route. Little did he know, this venture would grow into Saks Fifth Avenue, a name synonymous with luxury retail. Fast forward to today, and Saks continues to captivate high-end luxury shoppers, even as it faces challenges like luxury retail bankruptcy and retail restructuring. Let us dive into the story, exploring how this brand became a powerhouse and what its future holds.
The Early Days: Building a Foundation in Luxury Retail
Saks’s journey began humbly. Andrew Saks, born to a German Jewish family in Baltimore, Maryland, expanded his D.C. store in the 1880s, adding locations in Richmond, Virginia, and Indianapolis, Indiana. By 1902, he incorporated as Saks & Co. and opened a store on 34th Street in New York City’s Herald Square, entering the competitive world of big-city retail.
The real turning point came in 1923, after Andrew’s death, when his son Horace Saks merged with Gimbel Brothers Inc. This partnership provided the capital to move uptown. Customers were shifting north, and Saks followed, acquiring properties between 49th and 50th Streets on Fifth Avenue. Overcoming obstacles like buying out the Democratic Club, the flagship Saks Fifth Avenue store opened on September 15, 1924. It was a bold move, designed by architects Starrett & Van Vleck to blend with Fifth Avenue’s architectural charm while meeting modern retail needs.
This single store changed high fashion by bringing European couture collections to American shores. Saks introduced luxury brands to a wider audience, making designer fashion feel attainable yet aspirational. As one source notes, it pioneered in partnering with leading luxury brands to inspire fashion trends. By the 1930s, under Adam Gimbel and designer Sophie Gimbel, Saks became known for exclusive lines like Sophie Originals, setting trends in high-end apparel.
Expansion and Innovation: Saks Goes National and Digital
Saks did not stop at one iconic location. The brand expanded nationwide, opening stores in Chicago in 1929 (celebrating 90 years by 2019 as a symbol of stylish shopping) and beyond. In the 1990s, it launched Saks OFF 5TH for off-price luxury, meeting demand for discounted designer footwear and apparel. Then, in 2000, Saks.com debuted, embracing luxury e-commerce early and transforming how shoppers access couture collections.
These moves were game-changers. Saks adapted to consumer shifts, from suburban malls to online platforms. For instance, its Fifth Avenue flagship became a landmark, influencing retail design with open spaces and holiday windows that draw crowds. Transitioning to digital, Saks ensured a seamless luxury shopping experience, complete with easy online returns within 30 days (though a $9.95 fee applies for mailed items).
Yet, corporate history brought twists. Acquired by Hudson’s Bay Company (HBC) in 2013, Saks navigated ownership changes, including a split of e-commerce and physical stores in 2021. This era highlighted Saks’s resilience, even as the retail landscape grew complex.
Saks vs. Neiman Marcus: A Tale of Two Luxury Giants
No discussion of Saks is complete without comparing it to Neiman Marcus, another pillar of designer fashion. Both brands offer high-end apparel and couture collections, but differences shine through. Saks appeals to a trend-forward crowd with frequent sales (up to 70% off) and a median household income audience around $102,900 annually. Neiman Marcus, with a slightly more affluent base ($112,800 median), focuses on timeless elegance and family-oriented shoppers (26.2% from households with children versus Saks’s 23.7%).
In terms of selection, Saks boasts a vast array of best designer brands, from Christian Louboutin and Jimmy Choo in footwear to Brunello Cucinelli and Stella McCartney in apparel. Neiman edges out in exclusive deals and deeper discounts during events like Afternoon Tea sales. Shoppers often note Saks’s superior tailoring and sales, while Neiman excels in customer service heritage.
A table comparing key aspects:
| Aspect | Saks Fifth Avenue | Neiman Marcus |
|---|---|---|
| Founded | 1867 (D.C.), Flagship 1924 (NYC) | 1907 (Dallas) |
| Audience HHI | ~$102,900 | ~$112,800 |
| Strengths | Trendy selections, strong e-commerce | Timeless pieces, family appeal |
| Sales Strategy | Frequent promotions, up to 70% off | Deeper seasonal discounts |
| Store Count (Post-2026) | 25 (after closures) | 35 (after closures) |
This rivalry intensified with the 2024 merger, forming Saks Global under HBC. The $2.65 billion deal aimed to create a luxury powerhouse, combining Saks’s digital prowess with Neiman’s in-store expertise. However, it added $2.2 billion in debt, leading to challenges.
Navigating Modern Challenges: Bankruptcy, Closures, and Restructuring
Fast forward to the present, and Saks faces a pragmatic retail climate. In December 2024, Saks Global completed the Neiman Marcus acquisition, but by January 2026, it filed for Chapter 11 bankruptcy protection. The move, driven by acquisition debt and vendor issues, secured $1.75 billion in financing to stabilize operations. As CEO Geoffroy van Raemdonck stated, this positions the company for sustainable growth.
Retail restructuring followed swiftly. Saks announced Saks Fifth Avenue store closures in 2024 and 2026, including locations in Birmingham (Alabama), Columbus (Ohio), East Rutherford (New Jersey), New Orleans, Philadelphia, Phoenix, Richmond (Virginia), and Tulsa (Oklahoma). A Neiman Marcus store in Boston also shuttered, leaving Saks with 25 stores. Most Saks OFF 5TH outlets closed, with only 12 remaining for residual inventory.
These changes reflect broader trends in luxury retail bankruptcy. Low inventory from unpaid invoices hurt 2025 sales, but bankruptcy allows focus on full-price selling and profitable sites. For shoppers, this means uninterrupted access to luxury e-commerce and in-store experiences, like the Fifth Avenue Club for personalized styling.
Amid debates, some analysts see this as evolution, not decline. Saks continues innovating, with Amazon’s investment in the merger enhancing online reach. Yet, critics point to over-expansion and debt as pitfalls, sparking conversations on luxury retail’s future.
The Saks Luxury Shopping Experience: What Keeps Shoppers Coming Back
What sets Saks apart? It is the immersive luxury shopping experience. The Fifth Avenue flagship, with its own zip code for shoes, offers arcade games, salons, and eateries. Online, features like free shipping on $300+ orders and straightforward returns (30 days, with store options avoiding fees) make it user-friendly.
Best designer brands at Saks include Acne Studios for edgy apparel, Bottega Veneta for handbags, and Manolo Blahnik for footwear. Think of Saks as your fashion compass, guiding you to couture collections without the overwhelm. Real examples abound: a Victoria Beckham dress might retail at $237 on sale, versus higher at rivals, addressing myths that luxury is always unattainable.
For current Saks Fifth Avenue employees or stakeholders, these shifts bring uncertainty but also opportunity. As one insider might say, it is about adapting to how customers shop now, blending in-person prestige with digital convenience.
Looking Ahead: Saks in a Changing World
As Saks evolves, its impact on high fashion endures. The brand that turned a single store into a global force now focuses on core strengths amid retail restructuring. For fashion enthusiasts, this means continued access to designer fashion, perhaps with more personalized touches.
In conclusion, Saks’s story is one of ambition and adaptation. Whether you are a high-end luxury shopper eyeing the latest couture or a retail industry analyst tracking trends, Saks offers lessons in resilience.
Next Steps:
- Visit Saks.com for current deals on designer footwear.
- Explore the Fifth Avenue Club for a tailored experience.
- Compare Saks vs. Neiman Marcus in-store to see the differences firsthand.
- Check for Saks Fifth Avenue store closures 2024 updates before planning a visit.
- Sign up for Saks emails for bankruptcy news updates and exclusive offers.
Share your Saks luxury shopping experience below! Have you scored a favorite piece there?
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FAQs
What is the history of the Saks Fifth Avenue flagship?
The flagship opened in 1924 on Fifth Avenue, designed to harmonize with New York’s architecture while pioneering luxury retail.
What are the best designer brands at Saks?
Top picks include Christian Louboutin for shoes, Stella McCartney for apparel, and Bottega Veneta for handbags.
How does the Saks luxury shopping experience differ from others?
It combines in-store personalization, like styling suites, with seamless online features for a sophisticated, approachable vibe.
What are the latest Saks bankruptcy news updates?
Saks Global filed Chapter 11 in January 2026, securing financing and closing underperforming stores to focus on growth.
What is the Saks Fifth Avenue online returns policy?
Returns are accepted within 30 days; mail returns cost $9.95, but in-store is free.
How does Saks compare to Neiman Marcus?
Saks is more trend-focused with better sales, while Neiman emphasizes timeless elegance and deeper discounts.
What Saks Fifth Avenue store closures happened in 2024?
Closures ramped up in 2026, but 2024 saw initial optimizations post-merger, affecting select locations.
