Topline
Saks Global, which merged with Neiman Marcus late last year in a $2.7 billion deal, announced the Dallas flagship Neiman Marcus store will close on March 31. The city gave Neiman Marcus a $5 million incentive to stay located downtown, D CEO reports.
(Original Caption) Ca. 1945-1960-The Ervay Street entrance for Neiman Marcus in Dallas, TX. Two … [+]
Key Facts
Saks claims the landlord forced the store closure after “more than a decade of negotiations” for the Neiman Marcus Dallas store location bounded by Main, Ervay and Commerce Streets.
However, D Magazine reports that Dallas Central Appraisal District records “seem” to list the building’s owner as Neiman Marcus Group, so “it’s unclear who the landlord is.”
Impacted employees will be offered transfers to nearby locations, including the Neiman Marcus NorthPark Center store that will be refurbished by Saks Global with a $100 million investment, while others may get severance packages.
Founded in 1907 in Dallas and moving into its current location in 1914, the Neiman Marcus store is a Dallas cultural institution and an official historical landmark.
In 2022, Neiman Marcus accepted a $5 million incentive from the City of Dallas to remain located in the city that included a provision to keep the downtown store open through 2031.
Background
Real-estate mogul Richard Baker and owner of privately-held Hudson’s Bay Company acquired Neiman Marcus at the end of 2024 and folded it under Saks Global, which includes Saks Fifth Avenue and Saks Off Fifth. Rhône Capital, Amazon, Insight Partners and Salesforce partnered as investors in the merger. Marc Metrick, who was president and CEO of Saks Fifth Avenue after more than two decades with the company, is CEO of Saks Global. On a side note, Baker has a poor track record in retail acquisitions having failed with Lord & Taylor, Gilt Group, Fortunoff, and Home Outfitters.
Closure Not Due To Merger
In an internal memo obtained by Dallas Morning News, Metrick said the closure of the Dallas store was not related to the Neiman Marcus acquisition nor business performance. However, Saks Global just notified vendors that it will begin making installments on overdue bills in July and that payments for new orders will be made after 90 days, a month more than is typical in retail. Saks Global did not respond to a request for comment.
Tangent
The news of the Dallas store closing comes days after Saks announced the closure of the Neiman Marcus Dallas headquarters office in CityPlace Tower in a cost-cutting move. A spokesperson for the owner of that property told D CEO that the lease doesn’t allow for such termination and they expect conversations to continue to find a “solution that reflects the commitments that NMG made.” Abandoning the headquarters office also violates another provision in the City of Dallas’ incentive package: to remain headquartered in Dallas.
Crucial Quote
“This is the end of an era for Downtown Dallas and the closure has particular poignance because Dallas is the home market of Neiman Marcus. Fortunately, there are plenty of other Neiman Marcus stores in the metro area so some trade will likely transfer to those other stores. Nevertheless, this leaves a hole in the Neiman Marcus portfolio,” GlobalData’s Neil Saunders said.
Further Reading
What To Know About Neiman Marcus’ HQ Lease and Flagship Dallas Store Closure (D CEO, 2/18/2025)
Neiman Marcus Closing Flagship Dallas Store, A Downtown Icon For A Century (Dallas Morning News, 2/18/2025)
Neiman Marcus Will Close Its Downtown Flagship Store In March (D Magazine, 2/18/2025)
Saks + Neiman’s, Better Than The Sum Of Their Parts? (The Robin Report, 7/9/2024)
