Saks Global, continuing to integrate Saks Fifth Avenue and Neiman Marcus operations and reduce headcount, has formed a “commercial team” of senior-level merchants and fashion executives, WWD has learned.
Executives said the new organization “transforms” the buying approach whereby there is now one team of buyers with non-traditional titles serving both Neiman Marcus and Saks Fifth Avenue, blending talent from both retail nameplates.
Among the changes disclosed to WWD on Wednesday, five executives have been named senior vice presidents of brand partnerships and buying. They are:
- Tatiana Birkelund, for beauty, home and jewelry. She was previously vice president, general business manager over beauty and jewelry at the Neiman Marcus Group.
- Will Cooper for women’s shoes and accessories. He was senior vice president and general merchandise manager of women’s designer ready-to-wear, shoes and handbags at Saks Fifth Avenue.
- Jodi Kahn for women’s designer ready-to-wear. She was vice president of luxury fashion at the Neiman Marcus Group.
- Dayna Karafiol for women’s apparel and children’s. Karafiol was SVP, GMM for women’s contemporary and modern apparel.
- Joo Woo for men’s. Woo was vice president and GMM for men’s and children’s at the Neiman Marcus Group.
In other changes, Roopal Patel has become the senior vice president of the fashion office. She was senior vice president of the Saks Fifth Avenue fashion office. And Jeffrey Stauffer has become vice president of leased and marketplace manager. He was senior director of retail development at Neiman Marcus.
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Recently, Marc Metrick became chief executive officer of the Saks Global Operating Group; Emily Essner became president and chief commercial officer, reporting to Metrick, and Paolo Riva was named chief brand partnerships and buying officer, reporting to Essner. The new SVPs for brand partnerships and buying report to Riva.
This week, Saks Global is letting 550 workers go, as reported first by WWD on Tuesday. Specifically, they focus on commercial, finance, operations, human resources, technology and transformation teams, as well as store teams that support Saks Fifth Avenue and Neiman Marcus.
Among the departures, sources said, are two highly respected, influential merchants: Kate Oldham, who was senior vice president and general merchandise manager of beauty, jewelry and home at Saks Fifth Avenue, and Louis DiGiacomo, senior vice president and general merchandise manager of men’s for Saks.
Geoffroy van Raemdonck, NMG’s chief executive officer; Ryan Ross, president of Neiman’s and head of NMG customer insights; Lana Todorovich, chief merchandising officer at Neiman’s, and Katie Anderson, NMG’s chief financial officer, were among those who left late last year.
Most of the 550 cuts came from Saks Global’s corporate offices in Brookfield Place in lower Manhattan, Dallas and other locations, where a total of about 300 workers are being let go, the sources said. This latest downsizing at the corporate offices is in addition to the 5 percent corporate workforce reduction there disclosed in February. Another 500 jobs were also eliminated when Saks closed an owned fulfillment center in Tennessee recently.
Since Saks Fifth Avenue closed its deal to purchase the Neiman Marcus Group on Dec. 23, 2024, approximately 14 percent of Saks Global’s U.S. corporate population has been let go.
As Saks Global intends to reduce annual costs by $500 million over the next few years, additional staff reductions, as well as store closings, are expected.
The Saks Fifth Avenue store on Union Square in San Francisco will close on May 10. Last August, the store in an unprecedented maneuver switched to an appointment-only format. Due to crime, declining sales and shopper traffic in the city, many retailers have already closed shop there. Saks San Francisco and other stores including Neiman Marcus have been hit by snatch-and-grab robberies. “While we saw meaningful engagement and success through the appointment-only format, we have made this decision as part of our integration process as we focus on long-term growth,” a Saks Global spokesperson said. “We look forward to serving the Bay Area community at Neiman Marcus San Francisco, Neiman Marcus Palo Alto, The Fifth Avenue Club Palo Alto, Saks.com and NeimanMarcus.com.”
This month, the Saks Fifth Avenue store on Worth Avenue in Palm Beach, Fla., closed. As Metrick told WWD in an interview last week, he sees only up to 10 Saks Global stores closing. On Wednesday, the company stated, “As we continue through the integration process and execute our vision for Saks Global, we are committed to honoring the individual DNA of the Saks Fifth Avenue and Neiman Marcus brands and preserving what makes them both exceptional. There is not a broader plan to consolidate in markets where both Saks Fifth Avenue and Neiman Marcus operate.” In eight malls around the country, Saks and Neiman’s both operate stores.
Regarding staff at Saks San Francisco, “Transfer opportunities to Neiman Marcus San Francisco will be offered where possible, and eligible colleagues will be offered appropriate separation packages.”
Neiman Marcus has 36 stores; Saks Fifth Avenue operates 38, and Bergdorf Goodman operates a men’s store and a women’s store, but the company lists it as one location.
The formation of a single merchant team for both Saks and Neiman’s means buyers will have greater responsibilities, challenges and orders to handle, but it also means that Saks Global has greater clout over vendors than Saks or Neiman’s operating on their own did.
Commenting on Saks Global’s new commercial team, Metrick in a statement Wednesday said, “We are taking further steps to shape the future of Saks Global and ensure that we are well-positioned for the transformation to come. With that, it’s imperative that we have the right structure and team in place to capitalize on the opportunity ahead and drive our business forward. Any moments when our colleagues are impacted are the hardest, yet every decision is made with our overall strategy in mind — to truly redefine the way luxury consumers shop. While the changes today are part of our integration plans, we are also navigating a complex macroeconomic environment. We remain confident that our financial position provides the necessary flexibility to manage the business through this dynamic environment. We’re already seeing improvements in our inventory flow, approaching fiscal 2023 levels, as brand partner relationships get stronger through our commitment to grow alongside them.”
“As the largest multi-brand retailer in the world, we are transforming our buying approach for Neiman Marcus and Saks Fifth Avenue,” Essner added in her own statement. “I am confident that operating under a single leadership structure will enable us to create differentiated and durable partnerships with brands and drive our mutual growth. Together, we will be positioned to advance our shared ambition to deliver a true luxury experience to our customers. Our brand partnerships and buying team comprises some of the most talented leaders in our industry and I look forward to what they will accomplish for Saks Global and our brand partners.”
While Saks and Neiman Marcus are being managed by one team, Bergdorf Goodman continues to be managed separately.
In February, Saks Global spelled out its new policy to start paying vendors on a 90-day schedule and make good on past-due bills in monthly installments starting in July. Saks Global’s vendor matrix is being reduced by 25 percent as some vendors are deciding to stop selling the retailers and others are being dropped. The new 90-day schedule did not go over well with vendors, but it did give brands some sense of relief that they would finally get their money and that at least many of them would have a future with the retailer. They’re in a wait-and-see mode.
