After a tough 2024, the newly formed Saks Global has started offering its strategy clearly to its vendors with a master plan that “resets” how to do business.
Authorities also have a new payment schedule that is liquid enough for Saks Global to be a stronger partner for the brand and is superior to what the vendors owes, but focuses on stronger vendors. disclosed that they have a new payment schedule to culle the matrix to become a better partner. Stick to the saxophone.
Saks has notified the vendor of their new payment schedule. This shows that the vendor will be paid for 90 days after receiving inventory on March 1st, with all past balances being paid in 12 monthly installments starting in July 2025. Saks said ACh showed on the earliest commercially possible day, thereby “removing significant friction from our process.”
Many vendors, especially small vendors, have not been paid for several seasons and have completely cut or stopped Saks.
“We are resetting our multi-brand luxury distribution model. Marc Metrick, CEO of Saks Global, told WWD in an exclusive interview Friday. “The 29 years I’ve been in business.” What remains the same is how all finances work, and how vendors pay, but many of the models are not working correctly.
“Creating this incredible platform (Saks Global) gives customers the ability to become a destination where customers want to shop, but also allows brands to do business and grow. Make certain changes We need to set the right expectations, do everything we are trying to do, and we give consistency and certainty, and they do business with us. You need to reset to make sure you feel good about doing it. Growing in a brand is also very important, but at our brand partners, people lose money on saxophone to get paid. I want people to understand that they haven’t. When other companies filed for bankruptcy, did they receive compensation? No. “
Mark Metric
Asked about Saks Global’s recent appearance in the product, the metric replied: And this is what they give. This gives and guarantees certainty and clarity. ”
The metric refused to specify how much range the global vendors are, but the amount is said to be in the hundreds of millions of dollars.
“The recommendation I have for all of our partners is to put the last 18 months behind them. We come together as an industry to advance and grow, galvanized. We need to do that. That’s what we have to do. Our goal is to change this model: how to get to the market, how to sell to our customers, brand partners, everyone Here’s how to deal with it.
“I have a lot of sympathy for where Saks was, but at the same time, our brand partners aren’t losing money in our company. Metrics say that other luxury people say It’s not something you can do,” Metric said.
Saks-Parent Hudson’s Bay Co. purchased the Neiman Marcus Group and in December combined two retailers effectively created a $10 billion premium empire at Saks Global in the US. To close the deal, Saks Global, led by executive chairman Richard Baker, has included several creative tech giants including two tech giants, Amazon and Salesforce, as well as two apparel giants, G-III and Authentic Brands Group. We raised funding. Saks also secured $2.2 billion in bonds.
There have already been many changes. To lead the Nieman and Sachs stores and e-commerce business, Saks has created a single management structure with new leaders, senior positions and titles that the industry has never seen before. Sachs Fifth Avenue and Neiman Marcus work together, but Bergdorf Goodman is kept separate.
According to Metrick, the integration is expected to reduce global hopes by reducing costs by roughly $500 million in annual costs over the next few years.
Saks Global employs AI in the right place to maximize better personalization and customer experience.
Additionally, Saks is expected to be displayed in some form or way on Amazon.
“We have plans to start a unique and exciting experience,” Metric said.
As a by-product of creating Saks Global, “We have enough liquidity, and that doesn’t matter,” Metric said. “The S&P gave us a stable rating. They showed us there was a place and cash that could be done with the transition and integration.”
The retailer works with nearly 3,000 brands.
“Our hope is to do business with 25% less brands next year or so than we do today,” Metric said. “We can’t have so many brands and we can’t be great partners for each of them. Both the brand partners themselves and us have some ullings. We’ll be doing fewer brands next year. We are planning on doing business with and need to gain a lot of volume. But being part of the Saks Global Ecosystem will be great.”
According to the metric, the goal is that vendors “feel good at doing business with us.” Of course, growing with a brand is also very important. ”
“We want to be a strong, accountable and responsible partner for our brand partners,” Metric said. “To do that, we’ll need their support and the people who provide capital to them, those who lend them to them, and those who own them. Who will strengthen the distribution in the US? There needs to be a gathering. That’s why we bring these companies together and build something great for everyone.”
Mark Wine Stainless
In other news from Saks, Mark Weinsten, Managing Director of Boston-based BRG Corporate Finance and a member of the company’s Corporate Finance Leadership Team, has been appointed Interim Chief Financial Officer of Saks Global . He plays a key role in dealing with vendors and other financial issues.
Saks showed that Weinsten specializes in taking on a temporary role, previously serving as interim chief financial officer of Neiman Marcus Group and head of restructuring for the former interim prime minister. He also served as the interim CEO of NMG, interim CEO of Z Gallery and interim CEO of Manischewitz in other executive roles.
Weinsten replaces Jeff Pedersen, who left on work just six months later.
Asked why the CFO switch was created, the metric stated: We were probably going to do a transaction, maybe not. And when we close the deal, we’ve got a $10 billion digital company from his expertise, $2 billion, with a variety of business channels with many layers and many integrations and transformations. I went to a company. ”
On Friday, Metric sent a letter to the vendor, and copies of it were obtained by WWD. He writes: “We have completed our analysis of the Pables Backlog over the past few weeks and evaluated the payment terms for Sachs Fifth Avenue, Neiman Marcus and Bergdorf Goodman.”
Metrick spelled out the terms of payment for the new Go-Forward and planned to repay what the vendor owed.
“The expectation is that this will provide the clarity and certainty you’ve been looking for,” the CEO writes. “To that end, we look forward to seeing the flow of products return to normal levels. If there is no normal flow of products, we expect to need to make changes to the brand partner matrix. .
“We are committed to fulfilling all our obligations to our brand partners and ask us to continue with our partners, including delivering products, so that we can grow our business over the long term. I will.
“Once the NMG acquisition ends, our financial position will be stronger, our leverage will be reduced, and our investments will become a better partner for our brand partners. Additionally, we will include S&P Global Ratings (as part of our capital raising). has recently reaffirmed its stable outlook for Saks Global and has strengthened its liquidity to implement its strategy and business integration. As we move forward, Saks Global is in an increasingly strong position. By bringing together retail brands, we hope to achieve a significant synergy that further improves our financial position.”
