Saks Global is ending its e-commerce partnership with Amazon and closing nearly all of its Saks Off 5th stores as part of a broader restructuring effort. The company, which filed for Chapter 11 bankruptcy earlier this month, announced plans to shutter 58 of its 70 Saks Off 5th locations, retaining only 12 outlets. These remaining stores will primarily serve as a selling channel for excess inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman.
The decision to wind down the "Saks on Amazon" storefront comes as the retailer seeks to refocus on its core luxury business. A source with direct knowledge of the decision stated that the partnership saw limited brand participation and that Saks believes driving traffic to its own website, Saks.com, will be more beneficial. The partnership, which began after Amazon's $475 million investment in 2024, had already faced challenges, including pushback from luxury brands concerned about selling on a mass-market platform.
Saks CEO Geoffroy van Raemdonck stated that the company is "taking decisive steps to realign our business to better serve our luxury customers and drive full-price selling across our core luxury businesses." The retailer has also begun going-out-of-business sales at select Saks Off 5th locations and its Last Call stores, with discounts of up to 85% on merchandise. The company will cease purchasing inventory directly for Saks Off 5th, shifting its focus to higher-margin sales.
The move is part of a broader strategy to reduce costs and streamline operations amid financial difficulties. Saks Global, which also owns Neiman Marcus and Bergdorf Goodman, has been burdened by heavy debt following its $2.65 billion acquisition of Neiman Marcus in 2024. The retailer has struggled to compete in the e-commerce-dominated retail landscape, with more than 8,100 stores closing across the U.S. in 2025, according to Coresight Research.
Amazon did not immediately respond to requests for comment. However, court filings suggest tensions between the two companies, with Amazon's lawyer arguing that Saks improperly pledged its flagship Fifth Avenue store as collateral for a $1.75 billion loan, which conflicts with existing agreements tied to their partnership.