Saks Global's Downfall Blamed on Ignoring Luxury Customers

Richard Baker's real estate obsession and Marc Metrick's finance lens are thought to have sunk Saks Global, but the simplest explanation is that they failed to understand their luxury customers.

Published on Feb. 25, 2026

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The article examines the downfall of Saks Global, the combination of Neiman Marcus and Saks Fifth Avenue into a global luxury retail behemoth. It suggests that the company's leadership, led by Richard Baker and Marc Metrick, failed to understand the psychology and expectations of luxury consumers, instead focusing on real estate and financial metrics. The article argues that Saks Global's attempts to integrate the digital and physical retail experiences alienated their core luxury customer base, leading to a collapse in customer trust and satisfaction.

Why it matters

The Saks Global story highlights the challenges luxury retailers face in adapting to the digital age while maintaining the high-touch, personalized experience that luxury consumers expect. It serves as a cautionary tale about the dangers of prioritizing financial and operational metrics over understanding and catering to the unique needs of a brand's target customer base.

The details

The article suggests that Saks Global's leadership, led by real estate developer Richard Baker and finance-focused CEO Marc Metrick, failed to grasp the fundamental differences between the TJX customer base and the luxury consumer. While TJX customers seek out bargains and are comfortable with a more chaotic retail environment, Saks Global's customers expected a high-end, personalized experience with attentive sales associates and a carefully curated assortment. By separating the digital and physical businesses and focusing on cost savings and operational metrics, Saks Global leadership neglected the emotional and experiential aspects of luxury retail that were crucial to maintaining customer loyalty.

  • In 2021, Saks announced the e-commerce business would be split into a standalone entity.
  • By late 2025, Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman had accumulated poor customer reviews and ratings across various platforms.
  • In 2025, Saks Global owed $136 million to Chanel, highlighting the company's struggles to maintain relationships with top luxury brands.

The players

Richard Baker

The real estate developer who led the combination of Neiman Marcus and Saks Fifth Avenue into the global luxury retail behemoth Saks Global. Baker's real estate-focused approach clashed with the needs of luxury consumers.

Marc Metrick

The former CEO of Saks Global, known as the "best numbers guy in the business". Metrick's finance-driven lens failed to account for the emotional and experiential aspects of luxury retail.

Meghan Hayes

A customer experience designer at a Hong Kong luxury department store, who mapped the intricate touchpoints and choreography required to deliver a seamless luxury shopping experience.

Tom Ott

The former senior vice president and general merchandising manager for Saks, who recognized the need for a seamless shopping experience across digital and physical channels.

John McBarron

A former style adviser at Saks Fifth Avenue Chicago, who questioned the company's decision to prioritize e-commerce at the expense of the in-store experience.

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What they’re saying

“My job, essentially, is making seamless customer experiences. And that's what seamless means: so you as the customer don't have to actually realize how complicated it is, because on the back end, behind that, it's actually really complicated.”

— Meghan Hayes, Customer experience designer at a Hong Kong luxury department store (Forbes)

“The idea is to be able to offer the customer the product when and where they want it, on the medium where they want it. But the shopping experience needs to be seamless. And what happened is, by concentrating and spending all the energy on the e-commerce, they really gave up the store portion of the business.”

— Tom Ott, Former senior vice president and general merchandising manager for Saks (Forbes)

“How much are they really making on this internet that they're just dropping the stores out entirely? It seems to me that every one thing they sold on the internet, two of them came back.”

— John McBarron, Former style adviser at Saks Fifth Avenue Chicago (Forbes)

The takeaway

The Saks Global story highlights the importance of understanding and catering to the unique psychology and expectations of luxury consumers. By prioritizing financial metrics and real estate over the emotional and experiential aspects of luxury retail, Saks Global's leadership alienated their core customer base and ultimately contributed to the company's downfall.