Saks plans to wind down its storefront to concentrate on areas of its business that it believes offer stronger growth potential
Saks Global is looking to terminate its Saks on Amazon’ partnership with ecommerce major Amazon, Reuters reported. Saks plans to wind down its storefront to concentrate on areas of its business that it believes offer stronger growth potential.
The report noted that an Amazon spokesperson told Reuters said that beyond Saks, the Amazon luxury store continues to feature a wide range of high-end designer styles, with new luxury brands being added regularly.
The partnership stemmed from Amazon’s USD 475 million investment in Saks’ business in 2024. Under the agreement, Saks would sell its products on Amazon, committing to pay the ecommerce giant at least USD 900 million over eight years.
However, remarks by Amazon’s lawyer at a court hearing following Saks’ bankruptcy filing suggested the relationship had deteriorated and legal battles could be on the horizon.
At the hearing, the lawyer argued that Saks had improperly pledged its flagship Fifth Avenue store in Manhattan as collateral for a USD 1.75 billion loan, which is funding its operations during bankruptcy, despite the property already being used to secure payments owed to Amazon under their partnership.
Reuters pointed out that the partnership was also encountering resistance from Saks’ leading luxury brands, who feared that selling on a mass-market ecommerce platform could dilute their brand, according to two sources familiar with the brands’ views. (With Reuters Inputs)
