Why is Saks closing most Off 5th and Last Call stores now?

The reductions follow the Saks Global bankruptcy and a shift toward full-price selling. Nearly 60 Off 5th locations and five Last Call stores will close, leaving 12 outlets to clear residual inventory. The company and its brands aim for tighter pricing control, fewer broad markdowns, and healthier margins.

How do the Saks Off 5th closures affect luxury brands?

Brands gain more control over price and distribution. With fewer outlet doors, they can trim wholesale exposure and focus on direct channels. This can support margin and brand equity, though it may reduce unit volume in off-price and limit deal-driven customer acquisition.

What does this mean for off-price competitors like TJX and Nordstrom Rack?

They may see traffic benefits, but luxury inventory could be scarcer or more selective. If brands prioritize DTC and tighten wholesale, off-price mix may shift toward contemporary labels and core basics, with fewer premium fashion items and more discipline on ticket prices.

What should investors watch in the next two quarters?

Focus on gross margin, full-price sell-through, and inventory turnover at department stores. Track brand disclosures on DTC growth and wholesale order books. For real estate, watch vacancy backfills, lease terms, and rent spreads where Off 5th exits. Creditors’ recovery and inventory liquidation pace also matter.

Global Market Insights

February 04: Saks Off 5th Closures Signal Pivot to Full-Price Luxury

ByDanny Kontos February 4, 2026February 4, 2026

Saks Off 5th closures on February 04 spotlight a sharp turn in luxury retail after the Saks Global bankruptcy. The company will shut nearly 60 Off 5th stores and five Last Call locations, leaving 12 outlets to clear residual inventory from Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman. This cutback supports a Saks Fifth Avenue strategy focused on full-price selling and tighter brand control. For investors, the move raises questions about wholesale margins, off-price supply, mall vacancies, and who gains if branded goods flow away from discounters and into direct channels.