The past number of years have been tough on retailers.
Inflation has forced consumers to spend their money more mindfully. When many are prioritizing essentials like groceries, there’s not much room left for discretionary purchases.
Not surprisingly, a number of major retailers have filed for bankruptcy over the past year. And even those who have escaped bankruptcy have been forced to move forward with store closures.
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Macy’s is planning to close 150 underperforming stores as part of a broad strategy. Kohl’s recently shuttered a few dozen locations after telling investors it anticipates a revenue downtick for 2025.
In addition to inflation and changing consumer habits, retailers must brace for tariff impacts this year. If sales decline broadly in the coming months, 2025 could end up being a record year for store closures.
Iconic retail store to stay open through holiday season.
Neiman Marcus store was slated to close for a different reason
Department stores have not been immune to recent economic events. Both Bloomingdale’s and Nordstrom have announced closures, much to the dismay of loyal fans.
Neiman Marcus also announced plans earlier this year to shut down its flagship store in downtown Dallas. That news did not sit well with customers or Dallas city officials, who have been applying pressure to keep the store open.
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Saks Global, which owns Neiman Marcus, made it clear that the closure was not due to a revenue decline but to a lease dispute with the property owner.
City officials tried intervening and negotiating more favorable lease terms to save the store. However, those efforts seemingly proved fruitless, and Saks’ leadership doubled down on plans to close the store on March 31.
“Our decision to close the Neiman Marcus Downtown Dallas store is final, and we are moving forward as such,” said a Saks spokesperson earlier in March.
Neiman Marcus store to stay open through the holidays
After much back and forth, Saks is changing its plans regarding its flagship Dallas store. Now, it says Neiman Marcus will remain open in downtown Dallas through the end of the 2025 holiday season.
Saks also announced that it plans to reimagine how the space might be used in the future. The company intends to work with the city to transform the store into a “modern fashion, art, and entertainment destination.”
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“We deeply admire the city’s passion and unwavering dedication to Neiman Marcus’ storied legacy in Dallas. The potential reimagination of this iconic shopping destination reinforces Saks Global’s commitment to redefining the luxury shopping experience,” said Marc Metrick, Chief Executive Officer of Saks Global.
Dallas City Manager Kimberly Bizor Tolbert said the city was thrilled to learn that Saks had changed its mind about shuttering the store.
In addition to rethinking its downtown closure, Saks is moving forward with plans to invest $100 million in its nearby NorthPark Neiman Marcus location. The company plans to use both locations strategically to serve different customers within the Dallas market.
Neiman Marcus opened its flagship Dallas store in 1907. That location has been a major city attraction for more than 100 years.
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But while the store might see its fair share of traffic due to its location, the reality is that it might benefit Neiman Marcus to pivot to attract younger consumers.
Older shoppers may be drawn to Neiman Marcus due to the nostalgia factor. But as younger consumers are moving away from department stores in favor of shopping online, it’s going to take some strategy and innovation on the part of Neiman Marcus to broaden its customer base.
Saks will need to consider this as it takes steps to transform the store into a luxury retail and fashion destination.
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