What's Happening with Saks? - Fashionista - Fashion Designers, Models, Shopping, Style

saks logo.jpg A series of scary information has lead us to consider that Saks may be headed into some especially difficult times.

Recently, it came out that Saks has cancelled several planned store renovations, and they announced that they’re “not opposed” to closing certain locations if shoppers continue to prove unwilling to spend money on premier designer booties.

The next day, Moody’s (the credit ratings agency you might remember from a couple weeks ago) announced they’d have to “review” Saks’ credit-grade rating - and we all know what can come from that.

Since then, Saks has mounted the biggest sale we’ve seen so far this holiday season, and introduced a new Major Purchase Account option for frequent shoppers (which is really just fancy speak for layaway, something Walmart brought back this holiday season, as well.)

And yesterday? We were told (albeit, randomly) that the Saks in Philadelphia may be closing very soon, which (obviously) no one can (read: will) confirm.

It’s no secret high-end department stores like Saks have been feeling shoppers’ money problems more so than other types of retailers, but could the words “bankrupt” or just “closing” be on the horizon for one of the country’s most iconic stores?

Stay tuned.

posted by guest

Dec 02, 2008 2:13PM

No! No! This can't happen! I love Saks! Plus I love the Saks Off 5th outlets!

Dec 02, 2008 3:41PM

i am sure you most likely already know this tidbit but i am in the bridal industry and most of the Saks locations are shutting down their bridal departments...good for the smaller boutiques right?

Dec 02, 2008 11:24PM

guess that means i'll be out of a job soon...

Dec 03, 2008 1:09AM

I, for one, have greatly enjoyed the slowdown in luxury. If there's one thing to learn from this whole "economic slowdown" its that those with cash when times are bad can buy goods at "distressed" prices. I got a Marc by Marc Jacobs bag I was coveting over the summer for 70% off. I bought Jimmy Choo, Miu Miu, Prada, Gucci and Louboutin shoes for $100-200. I'm not sorry for Saks, they're suffering from something called the "business cycle." They should have hired an MBA who could have told them this was coming for the past 12 months.

Also, I took advantage of the MPA, which is not "fancy layaway". Layaway usually costs a fee and you don't get your merchandise until it is paid off. The MPA is much more like buying a car from an American manufacturer. Sales are so bleak that they're paying me to take the inventory off of their books. In return, they can book the revenue so that it will lessen the blow when earnings come out in January.
Come Nov. 2010 I pay off my bill with inflated dollars courtesy of the Federal Reserve and Treasury Department's One Trillion Dollar economic bailout. Loser for the taxpayer, Saks Fifth Avenue, and creditors, but a win for me!

posted by etoilee8

Dec 03, 2008 1:32AM

Guest 4, brag much? "Those with cash", meaning a select few. But I do appreciate you breaking down the MPA plan. You're making me seriously consider checking out the sales at Saks tomorrow. In all honesty, my local Saks is ALWAYS empty and so quiet you can hear a pin drop, which has lead me to believe they are going under for some time now. On an unrelated note, I did however buy a checkered Saks Fifth Avenue brand shirt today, from Salvation Army today. Price tag: $2.99 (and now I'm bragging about the good deals to be found in suburban thrift stores)

posted by GiGiG

Dec 03, 2008 12:39PM

Is the MPA account the same thing being offered to Saks cardholders? I know I was sent somehting about spending at least $2000 on my Saks charge between 11/11 and 12/11 and not having to pay for it (interest free) for 2 years, I think. I'm SO taking advantage...

Dec 03, 2008 3:52PM

And this is on AOL...

http://money.aol.com/investing/big-retailers-which-may-close-or-downsize?photo=9

Saks, Williams-Sonoma, Talbot's. These stores and others are tanking big time.

And that new plan isn't layaway, as another guest pointed out. Layaway you don't get to take your product home that day; with their finance program, you do.

posted by rockferry

Dec 03, 2008 9:53PM

I was at Saks in Palm Beach (Gardens) on Black Friday and I was really struck by how much was on sale, and what. Racks and racks of stuff - everything that was already marked down was another 50% off. I think that they've already been hit hard.