NEW YORK, Feb 3, 2026, 21:18 EST
- Amazon says its Luxury store will carry on without Saks, as Saks Global phases out the partnership
- During its Chapter 11 restructuring, Saks is set to refocus efforts on Saks.com
- Amazon, which holds a stake in Saks, is contesting certain elements of Saks’ bankruptcy financing in court
Amazon confirmed its luxury storefront will continue without Saks Fifth Avenue. This comes as bankrupt Saks Global begins dismantling the “Saks on Amazon” collaboration. https://www.retaildive.com/news/amazon-lux…
The split is significant because it strikes at two key challenges simultaneously: Amazon’s ongoing push to boost its high-end fashion sales and Saks’ bid to steady its operations amid Chapter 11 bankruptcy, which allows firms to continue running while reorganizing their debt.
The bankruptcy also pulls in a strategic investment tangled in the fallout. Saks’ partnership with Amazon stemmed from Amazon’s $475 million stake linked to Saks’ broader luxury ventures. The deal guaranteed minimum payments of $900 million over eight years, according to a filing.
Darcy Penick, president and chief commercial officer at Saks Global, told employees the storefront “saw limited brand participation” and that Saks would be winding it down to focus on driving more traffic to its own site. She described the move as part of a “thorough review” aimed at “sustainable, long-term growth,” but didn’t provide a timeline. https://www.wsj.com/business/retail/saks-i…
Amazon insists its luxury expansion shows no signs of slowing. “Beyond the Saks experience, the Amazon Luxury store continues to offer a wide selection of high-end designer styles, and we’re adding more luxury brands regularly,” a spokesperson stated. https://www.retailgazette.co.uk/blog/2026/…
Saks is pulling back again as part of a rapid overhaul. The retailer has been scaling down operations and focusing on driving customers to full-price luxury, instead of juggling too many channels.
Last week, Saks Global announced it will shutter 62 off-price outlets, including 57 Saks OFF 5TH stores and five Neiman Marcus Last Call locations, leaving just 12 Saks OFF 5TH stores operational. CEO Geoffroy van Raemdonck described the move as a “decisive step” to concentrate on the company’s “core luxury businesses.” https://retail-systems.com/rs/Saks_Global_…
The Amazon deal was already facing tension with brands. Some luxury labels have hesitated to sell on a mass-market platform, worried it might “dilute their positioning,” according to sources familiar with the matter. https://www.retaildetail.eu/news/fashion/s…
Industry data shows Saks isn’t the only one facing issues. EMARKETER projects online channels will make up 18.7% of U.S. luxury sales this year but notes few retailers have truly mastered luxury e-commerce. LuxExperience (formerly Mytheresa) stands out as one of the rare players successfully attracting high-net-worth buyers. https://www.emarketer.com/content/saks-fai…
In April 2025, “Saks on Amazon” debuted as a curated storefront within Luxury Stores at Amazon. At launch, Emily Essner, then president and chief commercial officer at Saks Global, described it as “a new shopping experience” allowing Amazon customers to explore a Saks-selected collection. Amazon fashion executive Jenny Freshwater added that shoppers were “eager to shop these brands in Luxury Stores.” https://www.businesswire.com/news/home/202…
This week is packed for Amazon investors. The company plans to webcast its fourth-quarter 2025 earnings call on Feb. 5. A market strategist cautioned that “very, very lofty” expectations could leave Amazon with little wiggle room if results falter. https://press.aboutamazon.com/2026/1/amazo… https://ts2.tech/en/amazon-stock-amzn-head…
That split might still take a nastier turn. PYMNTS revealed Amazon has pushed back against Saks in bankruptcy court, calling its $475 million stake “presumptively worthless.” This move sets the stage for a protracted dispute that could throw a wrench into Saks’ restructuring efforts and vendor negotiations. https://www.pymnts.com/news/ecommerce/2026…
