The news: Saks Global announced more closures as part of its post-bankruptcy restructuring.

• The retailer will shutter 12 more Saks Fifth Avenue stores by the end of May, along with three Neiman Marcus locations.
• That will leave it with just 13 Saks outposts—down from 33 in January—and 32 Neiman Marcus stores.

Why it matters: The store closures make it plain that Saks Global’s leadership believes Neiman Marcus to be the key to success—unsurprising given that most of its executive team, including CEO Geoffroy van Raemdonck, previously worked at the latter retailer.

Van Raemdonck’s strategy for turning Saks Global around looks nearly identical to the one he used to rescue Neiman Marcus from bankruptcy. The retailer plans to double down on luxury shoppers and top brands, who account for the largest share of sales.

• Around 40% of Saks’ and Neiman Marcus’ gross merchandise value comes from just 2% of the retailers’ customer base, the company told The Wall Street Journal.
• Its top 10 brands accounted for over one-third of sales for the fiscal year ended January 31, 2026.

While focusing on affluent customers and guaranteed sales drivers makes sense in the short term, given the dynamics of the K-shaped economy, Saks Global’s pullback could eventually hurt it.

• Van Raemdonck told The Journal that there is minimal overlap between Saks, Neiman Marcus, and Bergdorf Goodman customers, which means the company risks shrinking its shopper base at a critical juncture.
• Shifting its merchandise mix too firmly in favor of established brands could alienate shoppers who rely on department stores to introduce them to new labels and products.

The implications: Saks Global faces a tough road to recovery. The company’s focus on affluent customers could insulate it somewhat from broader economic uncertainty, but driving sales among that demographic will require sharp merchandising and an improved store experience.

With over half of shoppers (54%) cutting or stopping spend at department stores following a poor experience, according to a Qualtrics XM survey, the stakes are high for Saks. Any further missteps will benefit competitors like Macy’s and Nordstrom, which will happily seize any opportunity to take share.