Neiman Marcus announces the closure of its iconic Dallas location, marking a significant shift in the high-end department store’s operations following its recent acquisition by Saks Global.
Significant changes are unfolding at Neiman Marcus as it navigates a new ownership structure following its acquisition by Saks Global. The high-end department store chain is set to close its 110-year-old flagship location in downtown Dallas on March 31, marking the end of an era for the storied retailer. The announcement came last week from Saks, which also shuttered Neiman Marcus’s three-story corporate office in Dallas on February 14, implementing these decisions as part of broader cost-cutting strategies.
Saks Global’s $100 million investment is targeted towards a different Neiman Marcus outlet located at the NorthPark Center mall, approximately seven miles north of the downtown store. This move appears aimed at attracting younger shoppers while the company seeks to revitalize the brand.
Neiman Marcus, which first established itself in Dallas in 1907, has a long-standing history as a cornerstone of luxury retail in the Southern United States. It gained popularity for selling ready-to-wear fashions to affluent Texans and was recognized for pioneering initiatives to bring high fashion beyond traditional hubs like New York and Paris, according to Steve Dennis, a former Senior Vice President of Strategy and Multichannel Marketing at Neiman Marcus from 2004 to 2008. At its peak, Neiman Marcus expanded to over a dozen states, famed for its fashion shows, personal shopping services, and in-store dining experiences.
However, the brand has faced enduring challenges, particularly as consumer preferences shifted in the wake of the COVID-19 pandemic. Neiman Marcus was the first major department store to file for bankruptcy in May 2020, citing over $5 billion in debt. The retailer successfully emerged from Chapter 11 bankruptcy in September 2020 but encountered further difficulties leading to its acquisition by Saks Fifth Avenue’s parent company for approximately $2.7 billion in December 2024. The previous CEO, Geoffroy van Raemdonck, departed as part of this transaction.
The landscape for luxury retail remains challenging, especially as consumer spending hit its lowest point since the Great Recession in 2024, as reported by Bain. Today’s market offers luxury shoppers a variety of purchasing options, resulting in heightened competition for traditional department stores such as Neiman Marcus. Additionally, Saks Global is managing its own financial hurdles, including an 18-month backlog of bills owed to vendors, raising concerns about its overall stability.
Despite these challenges, Saks Global has expressed ambitions for advancing both online functionality and fulfillment processes across its brands. Dennis provided his insights to Modern Retail, indicating skepticism about the future of traditional department stores in general. Nevertheless, he believes in the potential for Saks CEO Marc Metrick and his team to understand the intrinsic value of Neiman Marcus, particularly within the Southern United States, where the brand carries a significant cultural legacy. “There’s a kind of fondness there,” Dennis stated.
The impending closure of the downtown Dallas Neiman Marcus is stirring emotions within the community. The Dallas Morning News remarked that the store is deeply ingrained in the city’s identity, labeling the closure as a painful acknowledgment that a part of the local culture is fading. Saks attributed the decision to a dispute with the landlord related to a land parcel located beneath the store rather than its recent acquisition.
Local real estate executive Lynn Van Amburgh, who has strong ties to the Dallas area, echoed sentiments of loss over the downtown store’s closure but suggested that the NorthPark Center location may thrive under new revitalization efforts. Neiman Marcus was a pioneer tenant when NorthPark Center opened in 1965 and has maintained a reputation for productivity within the local market. “I think [the brand] is only going to get better and stronger,” Van Amburgh noted.
Operating out of New York City, Saks Global is now tasked with securing Neiman Marcus’s future while balancing the needs of its other retail properties. Dennis pointed out that the corporation will need to be strategic about prioritizing Neiman Marcus in markets where it overlaps with Saks locations, as the two brands currently stand with approximately 50 Saks Fifth Avenue stores and 35 Neiman Marcus stores across the country.
Rumors have circulated regarding the potential closure of the Saks Fifth Avenue flagship store in Toronto, but a spokesperson for Saks told WWD, “We have nothing to share. We don’t comment on rumors.”
Source: Noah Wire Services
