Saks Global, a luxury department store chain known for selling high-end brands like Chanel and Burberry, has announced plans to close more than 10% of its stores across the United States. This decision is part of a larger strategy to reposition itself as a smaller, more profitable entity following a bankruptcy filing. The closures include eight Saks Global locations in cities such as Philadelphia and Phoenix, and also affect the Neiman Marcus store at Copley Place in Boston.

The company explained that the selected stores are primarily unprofitable and located in smaller markets with limited growth potential in terms of sales. By reducing its footprint, Saks Global aims to focus on more viable locations that can drive growth and profitability in the long run. The closures reflect the challenges faced by luxury retailers in adapting to changing consumer preferences and the broader economic landscape.

As Saks Global works through its bankruptcy process, the decision to streamline operations is crucial for its long-term sustainability in the highly competitive luxury retail market. The move highlights the ongoing pressures within the retail sector, particularly for brands that rely heavily on physical storefronts in less populated areas. By consolidating its operations, Saks Global hopes to emerge stronger and more focused on key markets that contribute to its bottom line.