Department store chain Saks Global is reportedly ending its partnership with online retailer Amazon.
A source said on Friday (30 January) that Saks would close down its “Saks on Amazon” store front to focus on areas of its company “it sees as spurring more growth,” Reuters reported.
The tie-up initially arose after Amazon invested £347.2m ($475m) to support the multi-brand luxury retailer’s acquisition of Neiman Marcus in 2024.
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The deal led to an agreement for Saks to sell items online with the ecommerce giant, paying Amazon at least £658m ($900m) over eight years.
It is understood that the tie-up between the businesses had already been hit with challenges before Saks Global’s bankruptcy filing.
Luxury brands sold through Saks had concerns that selling via a mass market ecommerce website would “dilute their brand,” sources told Reuters.
An Amazon spokesperson said: “Beyond the Saks experience, the Amazon Luxury store continues to offer a wide selection of high-end designer styles, and we’re adding more luxury brands regularly.”
Retail Gazette has contacted Saks Global for comment.
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