Saks Global Decided to End Its Partnership With Amazon

Saks Global took a step toward closing its luxury store on Amazon, one of the high-profile partnerships aimed at expanding its digital reach.

According to a Reuters report, this decision was taken as part of the comprehensive restructuring process carried out by the US luxury retailer following its Chapter 11 bankruptcy filing at the beginning of January.

While the move was considered a setback for Amazon’s goals of gaining a stronger position in high-end retail, it also brought renewed attention to luxury brands’ concerns about being present on mass-market e-commerce platforms.

Saks Plans to Redirect Traffic to Its Own Platform

According to a source close to the matter who spoke to Reuters, Saks plans to redirect online traffic back to its own website, saks.com, by closing the online store called “Saks on Amazon.” The same source stated that brand participation on the Amazon store remained limited and conveyed that some leading luxury brands expressed concerns that selling on a mass-market-oriented platform could weaken their brand positioning.

While Saks did not make a public statement on the matter, a brief statement from Amazon said that beyond the Saks experience, Amazon’s luxury store continues to offer a broad range of high-end brands and regularly adds new luxury brands.

The partnership between the two companies had already been under pressure after Saks Global filed for bankruptcy on January 14. The company had announced that it was reassessing its operational footprint, but had not made a clear statement on whether it would cancel the Amazon agreement as part of the bankruptcy process. Recent developments, however, revealed a shift in strategic direction.

Bankruptcy Pressure and Withdrawal From Off-Price Sales

The decision to end the Amazon partnership came immediately after other major downsizing steps by Saks. According to a separate Reuters report published a day earlier, the company was preparing to shut down most of its off-price-focused operations. This included the majority of Saks Off 5th stores and the entirety of the Neiman Marcus Last Call brand.

In its bankruptcy filing, Saks stated that the off-price division had become a significant financial burden for the company, noting that Saks Off 5th, including both physical stores and e-commerce operations, was expected to incur a loss of USD 139 million in fiscal year 2025.

Saks Global had been formed about a year earlier through the combination of Saks Fifth Avenue, Bergdorf Goodman, and Neiman Marcus. While attempting to stabilize its financial structure, the company clearly shifted its focus back to full-price luxury sales.

Amazon’s Investment and Legal Objection

Amazon had made an equity investment in Saks Global during the company’s formation in 2024. After the bankruptcy process began, Amazon filed an objection in court, arguing that its investment had become “presumptively worthless.” It also claimed that certain terms of the USD 1.75 billion financing secured by Saks were unfavorable to creditors.

Despite this, Amazon stated that it remains committed to its own luxury retail offerings independent of the Saks store and continues to work with selected brands.

Broader Implications for Luxury Retail

Industry observers noted that Saks’ decision to withdraw from Amazon reflected the structural pressures facing traditional department stores. As consumer traffic increasingly shifts to digital channels, the number of luxury stores is expected to decline, while the resulting vacancies may create new expansion opportunities for off-price and beauty retailers.

For Saks, the move away from Amazon represents a transition to a digital strategy that prioritizes direct customer relationships and brand control. As the company seeks to redefine its position in a rapidly changing retail environment, this step is regarded as a significant strategic shift.

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