Saks Global Stays Firm on Its Decision to Close Neiman’s Downtown Dallas Flagship.
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Saks Global is doubling down on its decision to close the historic Neiman Marcus flagship in downtown Dallas. Last week, Saks officials said the decision to close the flagship was due to an inability to come to lease terms with a landlord over a small piece of the property. But on Thursday, Saks appeared to be including the flagship’s business prospects as a factor in closing the store. In its statement on efforts to resolve the issue, Saks cited “the slow resurgence of the downtown Dallas area over the last several years” and a preference among customers to shop the Neiman Marcus store in NorthPark Center, which is also in Dallas. Related Articles Retail Will the Neiman Marcus Flagship in Dallas Survive After All? Retail Saks Global Is Cutting 5 Percent of Its Corporate Workforce Ian Putnam, chief executive officer of Saks Global Properties and Investments, said in the statement, “The claims that the store will remain open are misleading for the Dallas community, our store employees and our brand partners. Saks Global inherited this lease issue from Neiman Marcus’ previous owners and worked in good faith to come to an agreement with the landlord, who chose to terminate our occupancy. We acknowledge the position of the Dallas Consortium, particularly given the slow resurgence of the downtown Dallas area over the last several years, and are willing to hear their perspective. However, we have to make decisions as a business about what’s best for the future and our long-term success in Dallas and beyond.” A meeting between a representative from Saks Global and the Dallas Consortium, which is a group of city leaders and businessmen with the goal of enhancing downtown Dallas, is expected next week. It’s not likely to sway Saks’ decision to close the store. You May Also Like As WWD reported, the consortium claimed Wednesday that it had reached a deal that could keep the downtown Neiman Marcus flagship open. The deal involves the transfer of the property in dispute to the city from the landlord, thereby ending disagreements between the landlord and Neiman Marcus involving the land lease. “We have reached an agreement for the land in question to be donated to the City of Dallas,” the consortium stated Wednesday. “This transaction secures the continued operations of the flagship Neiman Marcus store in downtown.” However, Saks officials said that as of Thursday, they did not receive any documentation regarding an agreement between the landlord, Slaughter Partners, and the City of Dallas, and how this new agreement would affect the property, its other owners and the store’s ability to operate. Marc Metrick, CEO, Saks Global Operating Group, in Thursday’s statement said, “Dallas continues to be a top market for the Neiman Marcus brand. Based on customer data, we know that the overwhelming majority of our Dallas customer base prefers to shop at our NorthPark store. We look forward to the $100 million renovation of this location, enabling us to offer a new level of luxury fashion and service at one of our premier store locations. We know that the local community shares in our disappointment about losing a piece of Neiman Marcus history, but customers have expressed their excitement about the re-imagination of NorthPark.” Saks said it is offering transfer opportunities to nearby Neiman Marcus locations to associates affected by the downtown Dallas closing, which will happen on March 31. Those who are eligible have been offered appropriate separation packages. Saks acquired the Neiman Marcus Group last December.
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