Saks Off 5th — the luxury world’s version of TJ Maxx — is pulling back again as the bargain-hunting boom leaves it behind.
The off-price arm of Saks Global plans to close nine stores by January, cutting its national footprint to just 79 locations. The latest closures stretch from West Hartford, Connecticut, to Austin, Texas.
Once billed as the upscale alternative to discount rivals like TJ Maxx and Marshalls, Saks Off 5th sells designer fashion and accessories at reduced prices — but its stores have struggled to keep the same energy or selection of clothes, shoes and bags as competitors.
‘Saks is a business with a lot of issues and a lot of debt, so we are seeing a lot of shuffling of the deck,’ Neil Saunders, a retail expert at GlobalData, told the Daily Mail.
‘The main reason the company is closing a handful of Off 5th Stores is because they don’t pull their weight financially.’
The closures come barely a year after parent company Saks Global splashed $2.7billion on rival Neiman Marcus — a deal meant to revive both brands.
Instead, sales have slumped. The company faces such mounting cash problems that it has slowed payments to vendors, according to Retail Dive.
In August, Saks Global reported an 11.1 percent drop in revenue over the summer months compared to a year before.
Saks off 5th announced plans to close nine stores in January, a little over a year after it’s parent company, Saks Global, scooped up a competitor for $2.7billion
The company also lost $288million in the previous three months.
Since the merger, Saks closed a store in San Francisco and Neiman Marcus shuttered a flagship in Dallas.
A Saks Off Fifth in Manhattan also announced it would be shutting down in September.
Industry insiders say late payments have made Saks Off 5th a lower priority for many brands, limiting its ability to stock the same coveted labels found at competitors.
‘While off-price players like Nordstrom Rack and TJMaxx are treasure troves of bargains and deals, Saks Off 5th stores often look a little sad,’ Saunders added.
‘There is no clear range strategy, and sometimes the assortment looks like it’s random things the company could get its hands on.’
While Saks Global struggles with a cash crunch, its competitors for Saks Off 5th appear to be running away with the competition.
TJ Maxx continues to expand, and Nordstrom Rack has plans to open 20 more stores this year, bringing its total to nearly 300.
Saks Off 5th has struggled to attract customers this year, with sales sliding by more than 11 percent in the last quarter – industry insiders say the company no longer has priority from high-end vendors
The company has partnered with dozens of A-listers during new launched. Model and author Emily Ratajkowski (left) and comedian and actor Amy Schumer (right) attended a Saks Off 5th opening in Seattle, Washington
Independent analysts told the Daily Mail that Saks has been struggling with debt since the acquisition – they say the once-ritzy stores are struggling to attract top-end fashions as losses mount
For now, Saks Global is calling the closures a strategic reset.
‘As part of our ongoing and comprehensive strategy, we have taken a critical eye to our store footprint and will be closing select store locations in early 2026,’ a Saks Global spokesperson told the Daily Mail.
‘We are confident this will better position the Saks Off 5th business for long-term success and look forward to continuing to deliver for our customers.’
The company added that impacted employees will either receive offers to transfer to nearby stores or receive separation packages.
