Luxury department store Saks Fifth Avenue’s discount sister brand, Saks Off 5TH, recently announced its plan to close nine stores across the United States starting from January next year. According to Retail Dive, the brand currently operates 79 stores in the U.S.
A spokesperson for Saks Global, the parent company of Saks Off 5TH, confirmed in an email to Fox Business News that the retail chain, which operates approximately 100 stores in the U.S. and Canada, will begin closing some stores from January 2026 to “optimize” its store layout.
The spokesperson stated, “As part of our ongoing comprehensive strategy, we have thoroughly reviewed our store layout and will be closing some stores at the beginning of 2026.”
They further added, “We will focus more on high-performing and high-potential store locations and improve our overall store layout. The closure of the nine stores will better position Saks Off 5TH for long-term success, and we look forward to continue serving our customers.”
The nine stores set for closure are located in Austin, Texas; Chicago, Illinois; East Hanover, New Jersey; Niagara Falls, New York; Pittsburgh North, Pennsylvania; Plymouth Meeting Mall and Franklin Mall in Pennsylvania; Washington, D.C.; and West Hartford, Connecticut.
Multiple media outlets reported that the company had previously announced the closure of its store on 57th Street in Manhattan, New York, scheduled for December.
Saks Off 5TH opened its first discount store named Saks Clearinghouse in Franklin Mills, Pennsylvania, in 1992, and later rebranded to its current name in 1995. The brand launched the Saks Off 5TH website in 2013.
In 2024, Macy’s also announced its plan to close 150 stores before 2026 as part of its revitalization initiative, aiming to return the company to a sustainable sales growth trajectory. Macy’s stated that it would invest in its existing 350 Macy’s stores.
In January this year, Macy’s announced the closure of 66 stores.
In February, struggling to adapt to the rapidly changing market environment, JCPenney announced plans to close a “small number” of stores.
In March, beloved fashion retailer Forever 21 filed for bankruptcy protection and earlier this year closed all its stores in the U.S.