Saks deal triggers layoffs; key executives move to global Saks roles

This story was updated on July 23 at 2:52 p.m. ET

The core functions of Saks.com, the Saks Fifth Avenue stores known as SFA, and the Saks Off 5th companies are combined under the Saks Global umbrella.

The strategy is an attempt to increase efficiency and sources say it will result in about 100 layoffs, or 1 percent of the workforce, including the elimination of some positions.

The legal, technology, operations, human resources, communications and finance teams of the three companies will be consolidated under the Saks Global corporate umbrella.

Earlier this month, Saks owner HBC reached a definitive $2.65 billion agreement with Amazon, Rhône Capital, Salesforce and other investors and lenders to combine Saks and Neiman Marcus Group under the same corporation called Saks Global, which is currently in the process of being formed.

The Saks-Neiman deal is pending government approval. The Federal Trade Commission has requested information from Saks, which has already provided some of it, and Saks will have to make a case for the merger, likely insisting that the two retailers have a better chance of surviving and growing under one corporate entity rather than as separate companies. Saks will also emphasize that there is still a lot of competition in the luxury sector from multi-brand sites and luxury brands operating their own stores and sites.

As previously reported, Marc Metrick, who was CEO of Saks.com, will become CEO of Saks Global, overseeing Saks.com, Saks Fifth Avenue and Saks Off 5th, specifically merchandising and marketing functions. He reports to Richard Baker, executive chairman of Saks Global.

Metrick told WWD that Saks Global can be considered a “support management company,” including back-office functions such as legal and finance. “Nothing changes in terms of how the customer-facing elements are run at the channel level,” Metrick explained. “Saks Fifth Avenue, Saks.com, Off 5th, they’re all their own verticals. What doesn’t change is their marketing and merchandising functions. Customers want the best online experience. Customers also want great in-store experiences. But that doesn’t mean there aren’t more efficient ways to run functions that allow our customer-facing businesses to focus on the experience.”

In a memo sent to employees Tuesday, a copy of which was obtained by WWD, Saks indicated that certain roles were being eliminated as a result of changes underway at Saks Global, essentially centralizing some operations. “Decisions that impact team members are never easy, but they are necessary to strengthen our financial results and support our future success,” the memo said.

With the consolidation of roles, several executives have been reassigned to Saks Global positions and will report to Metrick, including Mike Hite, who has been named chief technology officer. He joined Saks in April 2021 as chief information officer and has been Saks’ chief technology officer since January 2023.

Additionally, Rob Brooks becomes COO, overseeing digital operations, supply chain and logistics, contact centers, sustainability, asset protection, procurement, and business operations in India. He had been president and CEO of Saks Off 5th since March 2023.

Kim Miller replaces Brooks as CEO of Saks Off 5th. She was CEO of Boutique Brands, a company that invests in online boutique retailers focused on women’s clothing. Miller previously served as chief marketing officer at Rakuten. Earlier in her career, she worked at Charlotte Russe, Macy’s and HP.

Mara Sirhal, Saks Off 5th’s chief merchandiser, has left the off-price store. The Off 5th merchandising team will now report to Miller and be led by Off 5th’s two senior vice presidents and general managers, Melissa Garrick, who oversees the downtown and footwear areas, and Allison Ross, apparel.

And Sarah Garber has been named chief human resources officer. She had been chief human resources officer at Saks since March 2021.

Jeff Pedersen has been named CFO of Saks Global, effective Aug. 12. He replaces Vince Phelan, who served as CFO of Saks until leaving the company earlier this year. Pedersen currently serves as CFO of Andela, the world’s largest private marketplace for skilled digital talent, and previously worked at IBM and Dell.

Nicole Schoenberg will lead communications for Saks Global, senior vice president, who will continue to report to Emily Essner, chief marketing officer at Saks.

“Today, we are taking a major step forward in creating Saks Global, which will allow us to build on the success of our strategic move to separate our stores and e-commerce businesses,” Metrick said in a statement to employees. “With technology and a focus on the consumer, the creation of Saks Global will accelerate our efforts to innovate the luxury shopping experience for our customers.”

Saks also pointed out that Essner, and Stephanie Salierno, Senior Vice President of Planning and Tracy Margolies, merchandising director, “will continue to be part of the Saks organization within Saks Global,” reporting to Metrick. “The Emily, Stephanie and Tracy teams will also continue to work with SFA as they have done.”

Saks Global, a combination of luxury-oriented retail and real estate assets, includes Saks Fifth Avenue, Saks Off 5th, and if the merger agreement is approved, would also include Neiman Marcus and Bergdorf Goodman. According to HBC, the plan is for each unit to continue to operate under its own brands. Saks Global will include HBC’s U.S. real estate assets and Neiman Marcus Group’s real estate assets, creating a portfolio of retail real estate assets worth $7 billion.

In addition, HBC’s Canadian operations, which include TheBay.com, Hudson’s Bay department stores and $2 billion in real estate, will be recapitalized and remain separate from Saks Global, with “significantly reduced leverage and increased liquidity,” the company said.