Saks Will Close Most Off 5th Stores With Big Clearance Sales

The parent company of Saks Off 5th will start to close nearly three dozen of the discounter’s stores this weekend, the company’s first big move as it aims to slash costs and emerge from bankruptcy proceedings as a profitable company.

Saks Global Enterprises is also shuttering five stores from its Last Call chain. The bankrupt department store operator will focus instead on its luxury offerings at Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman chains, the company said in a statement.

The clearance sales — which will aim to offload as much inventory as possible before the stores close — are likely to attract shoppers across the country seeking deals on high-end items. At the same time, Saks will also have to be careful not to push the sales too far. Executives at luxury labels will be keeping a close eye on the process to ensure the US retail market isn’t flooded with their high-end items at big discounts, which could undermine their luxury cachet over time.

Starting on Saturday, 34 Saks Off 5th locations, including in Atlanta, Boston and Las Vegas, will have closing sales. Another 23 stores will close down on Feb. 2. A complete list is here.

One dozen Saks Off 5th locations, in cities including Paramus, New Jersey and Boca Raton, Florida, will remain open temporarily to serve as a clearing house for the luxury apparel and accessories that haven’t sold at Saks Fifth Avenue, Neiman and Bergdorf.

Separately, saksoff5th.com, which is a separate legal entity from Saks Global, is also starting to wind down its operations. Those closing sales will begin on Friday. “Customers are encouraged to shop early for their favourite brands while merchandise selection is best,” the company said in the statement.

By Jeannette Neumann

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Saks Off 5th Digital to Liquidate Inventory While in Bankruptcy

The e-commerce unit is being run by independent managers and the sale of its assets does not include any merchandise of Saks Global’s brick and mortar stores.