Saks Global to drop 600 brands as it reshapes luxury retail strategy
Richard Baker confirms aggressive vendor cuts and pivots to “controlled brands” with Amazon partnership and global expansion plans
Text size
Richard Baker confirms aggressive vendor cuts and pivots to “controlled brands” with Amazon partnership and global expansion plans
Share
LONDON — Saks Global is undertaking a major overhaul of its vendor base, with plans to eliminate 500 to 600 brands from its current portfolio. Executive chairman Richard Baker revealed the move during the World Retail Congress in London, calling it a necessary reset following Saks’ recent mergers and rapid growth.
“We had to right-size our vendor matrix,” said Baker. “We ended up with 2,660 vendors — far too many, and many weren’t aligned with our strategy.”
The decision reflects a broader shift toward margin-rich, controlled brand partnerships, including Saks’ 50/50 joint venture with Authentic Brands Group (ABG) under the banner Authentic Luxury Group.
Baker’s long-term goal is to have 20% of Saks’ sales come from controlled brands, such as Barneys New York, Judith Leiber Couture, Hervé Léger, and Vince. That would mean deeper profit margins and better supply chain alignment.
“Take 20% of $9 billion — that’s $1.8 billion,” noted ABG CEO Jamie Salter. “If Saks makes 25% more on that product, that’s nearly $400 million in added value. That’s why this model is so critical.”
While Saks boasts $9 billion in annual gross merchandise value, the company is currently facing financial scrutiny. S&P Global placed its “CCC-plus” credit rating on negative watch, citing “less-than-adequate liquidity” and uncertainty over how it will meet obligations, including a $120 million interest payment due in June.
Saks has reportedly brought in both financial and legal advisors and is exploring capital markets to boost its position.
Baker also touted the success of Saks on Amazon, calling it a “walled garden” within the online marketplace that ensures only Saks-curated luxury items are visible. “Amazon is building gated platforms for us in India, Japan, the UK, Europe, and the Middle East,” Baker said, adding it took six years to finalize the deal.
The ABG partnership is also expanding into entertainment and hospitality, with Amazon producing a Barneys-themed TV series described as a “Gossip Girl”–style show centered on luxury shopping. Meanwhile, Barneys Tulum in Mexico has become the brand’s first luxury lifestyle project, with condo-and-retail expansions in Bangkok and the Asia-Pacific region in development.
With Saks exploring a global retail alliance and deepening its ABG ties, Baker said the future lies in smart consolidation, brand control, and luxury experiences. “A lot of people think we’re just in fashion. We’re not. We’re in lifestyle and hospitality — and we’re building that future now.”
