Few topics have been as widely discussed in the retail industry as Saks Global’s ongoing struggle for relevance. The major luxury retail conglomerate, comprising multiple legacy players including Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman, and Saks Off 5th, has been trying everything to boost profitability. This included major C-suite shake-ups – such as the departures of president Emily Essner, chief transformation officer Bill Bine, and COO Rob Brooks – as well as attention
ention-grabbing announcements such as its partnership with Amazon.
Alas, these efforts haven’t made much progress as it reported that revenue fell by over 13 per cent year-over-year to $1.6 billion in its most recent fiscal report, missing its own expectations.
Saks Global CEO Marc Metrick largely attributed the lackluster results to inventory challenges, with inventories down to $1.9 billion from $2.1 billion in the previous quarter.
An issue that has been further aggravated by Saks Global’s failure to pay back its vendors, several of whom, like Jovani Fashion, have already filed lawsuits over unpaid invoices. While most vendors haven’t filed lawsuits or issued a formal complaint (yet), there are whispers from several that they will not be showing Saks Global any collections moving forward.
As analyst Neil Saunders, managing director at GlobalData, told Inside Retail, “Saks management entered the year on an optimistic note, but 2025 was always going to be challenging for them.”
Now that the year is coming to a close, Saks Global is worse off than where it started.
Retail experts like Saunders warn that if the corporation doesn’t get its finances under control soon, there is a strong chance Saks Global will declare bankruptcy in 2026.
Where did Saks Global go wrong?
Saunders pointed out that in addition to its ongoing vendor issues, Saks Global sank itself into a deeper hole with the pricey $2.7 billion acquisition of Neiman Marcus in December 2024.
“The acquisition of Neiman was financed by an unsustainable amount of debt, which came on top of a group that was already struggling to pay its vendors on time,” said Saunders.
“It is fair to say that the business is now in a real pickle and is struggling to extract itself. We know that Saks is weighed down by huge debt and that sales have been weak. These things make for uncomfortable bedfellows as they create huge pressure on the financials.”
Versus focusing on the fundamentals of retail, such as premium product offerings and top-notch customer service, Saunders added that the company has been too busy playing around with its financials.
“They partly view themselves as a real estate firm, which is fine, but this doesn’t cut much mustard with consumers who don’t care about the real estate – they care about a great retail experience. However, the primary problem is the debt levels.”
Adding to Saunders’ remarks, Christine Russo, the principal of Retail Creative and Consulting Agency (RCCA), pointed out that Saks Global has failed to do what winning luxury players do best – inspire people to shop.
”You can’t synergize your way to growth, especially in luxury,” said Russo.
She explained that while the merger that created Saks Global was met with much fanfare – especially around creating cost-saving ‘synergies’ – it didn’t translate into any actual excitement among consumers.
The retail industry expected to see Saks Global develop hyper-fixation on the luxury experience – how people discover, experience and connect with brands. Instead, she noted, headlines this year have been centered on slow vendor payments and brain drain, and they have not only reached industry insiders. Social media has also started to pick up the stories, and customers are now aware that inventory has been impacted.
“The truth is that a luxury department store is all about curation, exclusivity and strong product, and Saks Global needs the funds to support this. Between debt and declining sales, this is becoming increasingly difficult to manage.”
What’s in store for Saks Global in 2026
Suffice to say that experts’ predictions for Saks Global’s operations in the year ahead are a bit bleak.
“2026 will simply be more of the same,” said Saunders. “There is very little to suggest that Saks can pull out of its nose-dive, especially if it is not able to pay suppliers on time. There is a very strong possibility of bankruptcy or some kind of restructuring – especially if trading in the fourth quarter remains weak.”
While chances aren’t looking great for the department store giant, not all hope is lost for Saks Global.
“One way to get out of this mess would be to maintain a better focus on assortment, service and storytelling,” Russo said. “Not to mention better optics and better support of vendors. For example, if you need time to pay, do activations at no charge to promote the brands.
“Create selling incentives to move the brand’s product and position the brand on behalf of the brand.”
Further reading: Saks Global’s struggle: layoffs, debt and the fight to stay relevant
