Saks Global Cuts Up to 600 Brands Amid Financial Pressure

Saks Global is undertaking a significant restructuring of its vendor portfolio, planning to cut 500 to 600 brands from its existing 2,660 vendors to focus on more strategic, margin-rich partnerships. Executive chairman Richard Baker emphasized the need to 'right-size' the vendor matrix and increase the share of sales from 'controlled brands,' such as those in its joint venture with Authentic Brands Group, aiming for these brands to represent 20% of sales with higher profit margins. The company, which has over $9 billion in annual gross merchandise value, is pursuing this model to improve cash flow and supply chain alignment amid financial challenges, including a negative watch on its credit rating and looming debt obligations. Saks also highlighted the success of its curated presence on Amazon and plans to expand this model internationally. Industry analysts note this shift reflects a broader retail trend towards vertically integrated brand ownership for better inventory management and profitability. The cuts will primarily impact smaller and mid-sized labels reliant on department store distribution, marking a strategic pivot for Saks Global amid mounting financial pressure.