Saks Global has announced the closure of its Neiman Marcus department store at Ala Moana Center as part of a restructuring initiative aimed at streamlining operations. This announcement follows the company’s bankruptcy filing earlier this year, marking a significant shift in its retail strategy.
The closure of the Ala Moana store, which opened in September 1998 and has served as an anchor tenant by occupying three stories and 160,000 square feet, will be part of a broader strategy that includes the shutdown of three additional Neiman Marcus locations and twelve Saks Fifth Avenue stores around the country. While a specific closing date was not disclosed, employees at the Honolulu location were informed that the store would cease operations by the end of May.
The Neiman Marcus flagship in Ala Moana was notable for featuring the Mariposa restaurant on its third floor, adding a unique dining experience to the shopping destination. The announcement of its impending closure follows closely on the heels of the recently shuttered Saks Off 5th outlets at Ala Moana Center and Waikele Premium Outlets, indicating that Saks Global will soon have no retail presence in Hawaii.
Beyond the closure in Hawaii, Saks Global will also close stores in Canyon Park, California, and White Plains, New York, as part of this rationalization effort. The list of closures also includes twelve Saks Fifth Avenue locations from California to Maryland.
In a statement, Geoffroy van Raemdonck, CEO of Saks Global, emphasized that this move is aligned with the company’s long-term vision focused on creating a store portfolio concentrated in prime locations with a strong customer base for luxury goods. He elaborated that the goal is to build loyalty and foster sustainable growth within these markets.
Saks Global’s financial troubles came to a head with its bankruptcy filing on January 13, which listed debts of $3.4 billion. This turmoil followed a previous attempt to consolidate luxury brands, which included bringing together Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus under a single umbrella. In 2024, Neiman Marcus was acquired by Canada’s Hudson’s Bay Co., which had previously owned Saks since 2013 before separating its U.S. luxury assets to form Saks Global.
As part of the closure protocol, Saks Global announced that customers would no longer be able to purchase new gift cards at any of the closing locations. However, existing gift cards will continue to be valid at those stores for 15 days following the beginning of closing sales. After that period, these gift cards will no longer be accepted. Customers will also be able to make returns and exchanges for merchandise purchased prior to the closing sales according to the usual policies.
With these changes, Saks Global is clearly pivoting its retail strategy amid ongoing challenges within the luxury market, seeking to hone in on its most successful stores while exiting underperforming locations.
