Saks International is slicing 5 p.c of its company workforce, or simply underneath 150 staffers, WWD has realized.
The cutback is a part of the combination of Saks Fifth Avenue and the Neiman Marcus Group within the wake of Saks International’s $2.7 billion buy of NMG in December. Additional consolidations, together with layoffs, are anticipated.
“We’re persevering with the combination course of following our latest acquisition of Neiman Marcus Group by consolidating useful management, clarifying key determination makers and starting to simplify our organizational construction,” Saks mentioned in a press release offered to WWD. “In consequence, we’ve eradicated sure roles. We’re grateful to those colleagues for his or her contributions and are dedicated to supporting them by this transition.”
Marc Metrick
Courtesy picture
WWD obtained a replica of a memo Saks International chief govt officer Marc Metrick despatched to workers on Tuesday.
“There may be distinctive expertise throughout Saks International which suggests there might be troublesome choices alongside the way in which. These modifications are by no means simple, however they’re essential to place the corporate for future success,” Metrick wrote.
“These modifications deal with Saks International’s finance, authorized, operations, folks, know-how and transformation groups, choose business and retailer groups that help Saks Fifth Avenue and Neiman Marcus, and choose groups at Saks Off 5TH. There aren’t any modifications to share for Bergdorf Goodman.”
Metrick famous that there might be extra modifications at Saks International, as the combination with Neiman’s progresses.
“At instances, it could really feel like quite a lot of change, however we’ll proceed to be considerate and intentional in our choices with respect to our folks, processes and enterprise, and in how they’re communicated,” Metrick wrote.
The modifications are coming quick and livid for Saks and, in no less than some circumstances, assembly with some resistance.
Dallas politicians and native financial leaders have shaped a coalition trying to stop the Neiman Marcus flagship from closing, which is able to result in layoffs. Saks mentioned efforts might be made to reassign affected people on the retailer.
Neiman Marcus in downtown Dallas.
Saks International administration is being urged to resolve a lease difficulty Saks says is forcing Neiman’s downtown Dallas retailer to shut.
“That is greater than only a retailer shutting down. It’s an historic landmark, a pillar of Dallas tradition, and what makes this metropolis distinctive,” mentioned Jennifer Scripps, president and chief govt officer of the nonprofit Downtown Dallas Inc., Tuesday morning at a press convention in entrance of the Neiman’s flagship at 1618 Predominant Road.
However for the Dallas elite, there’s little or no time to reverse the choice to shut Neiman’s Dallas flagship on March 31.
“After greater than a decade of negotiations, we obtained a discover from a landlord to terminate our occupancy, forcing us to shut the Neiman Marcus Downtown Dallas location efficient March 31, 2025,” Saks mentioned in a press release Feb. 17. The dispute concerned a land lease held by one of many landlords on the positioning. The negotiations would have been held by the earlier homeowners of NMG.
“We abruptly realized this information,” of the flagship closing, mentioned Scripps. “We felt prefer it appeared untimely or it was like beginning to plan a funeral with out verifying the affected person didn’t have a glimmer of life left. We have been heartened to listen to that Saks made it abundantly clear that they don’t need to depart Dallas, because of circumstances past their management.”
Metropolis supervisor Kimberly Bizer Tolbert, a downtown Dallas resident, instructed the gang: “It’s vital that we proceed to deal with this flagship retailer. Because it was constructed greater than 110 years in the past to interchange the unique constructing after a hearth, it has grow to be of the material of downtown, a premier luxurious vacation spot. It put Dallas on the worldwide map. It’s greater than an iconic procuring vacation spot. It’s a spot to steal away for some lovely retail remedy.”
Tolbert advised that Neiman’s in Dallas ought to prosper going ahead, stating that 4 million guests to downtown are anticipated in 2026, with the conference middle being redeveloped and with some FIFA World Cup soccer video games to be held in Dallas.
Councilman Paul Ridley mentioned that when Richard Baker, govt chairman of Saks International, got here to Texas a number of weeks in the past, “he anticipated this retailer remaining open.”
Describing Baker as “a culinary star in highschool, a retail genius and an actual property mogul,” Ridley mentioned, “We’re all right here immediately, Mr. Baker, that can assist you resolve your downside…Neiman Marcus was constructed with Texas cash and Texas grit. Texans are trustworthy to a fault. We’ve a really lengthy reminiscence.”
He mentioned that when Baker and Metrick have been lately in Dallas, they flew again taking the portrait of Stanley Marcus, the legendary impresario of Neiman Marcus and son of the shop’s founder, from the shop with them. “We’re inviting Mr. Baker and Mr. Metrick to satisfy with the bottom lessors and return the portrait…We all know that land use parcels and land leases in downtown are idiosyncratic and quirky.”
“Collectively we’re working to make sure that Neiman Marcus stays downtown,” Ridley mentioned.
“Let’s not lose this flagship as a result of it means a lot to our metropolis and to the individuals who dwell right here due to a land lease negotiation that has gone sideways,” mentioned Linda McMahon, CEO of the Dallas Financial Improvement Company. “We take Saks at its phrase that it desires to stay. All of us need to assist clear up this misunderstanding.” Neiman’s, she added, is part of the soul of the town and isn’t just a model.
McMahon mentioned a letter is being despatched to Saks management and property homeowners concerned within the dispute, requesting a gathering. “We’ve over a month to get this again on monitor. I’m thrilled that Saks has each intention to maintain our flagship.”
Neiman Marcus in downtown Dallas has operated there for greater than a century and lengthy served because the headquarters for the posh retailer. Nevertheless, many executives on the Neiman’s staff started working remotely through the pandemic and continued to take action in subsequent years, together with some senior executives working in New York Metropolis.
Whereas an vital and historic location, the Dallas flagship has not been a top-volume producer for the Neiman Marcus luxurious chain, although Saks did peg the approaching closing of the Dallas flagship on an actual property difficulty, not its enterprise efficiency. The Neiman’s unit in Northpark Middle in Dallas, for instance, generates a lot better quantity, and it’s the place Saks International plans a $100 million overhaul.