Saks Fifth Avenue will close its longtime store on El Paseo in Palm Desert as parent company Saks Global restructures its national retail footprint following a bankruptcy filing earlier this year.
The luxury department store at 73-555 El Paseo, located within The Gardens on El Paseo, is among 12 Saks Fifth Avenue locations and three Neiman Marcus stores nationwide slated to shut down as part of the company’s restructuring plan.
The Palm Desert store, a two-level building of roughly 50,000 square feet, has long served as the anchor tenant of The Gardens, a luxury open-air retail center along El Paseo.
A longtime anchor on El Paseo
The Saks Fifth Avenue location opened in the early 2000s as part of the development of The Gardens on El Paseo, a project designed to elevate Palm Desert’s reputation as a luxury shopping destination.
Over time, the store became one of the corridor’s primary anchors, helping attract other high-end brands and boutiques to the district. El Paseo today includes luxury retailers such as Gucci, Louis Vuitton, Bottega Veneta and many other designer labels, along with galleries, restaurants and boutique hotels.
The 50,000-square-foot Saks store helped define the upscale positioning of The Gardens, which contains roughly 200,000 square feet of retail space and remains one of Greater Palm Springs’ premier luxury shopping centers.
Part of broader regional retail shifts
The Palm Desert closure follows a series of luxury retail changes across the region.
Earlier announcements indicated that Saks OFF 5TH discount locations in Palm Desert and at Desert Hills Premium Outlets in Cabazon, along with a Neiman Marcus Last Call store at the outlet center, would also close as the company reshapes its store network.
Bankruptcy and restructuring
Saks Global filed for bankruptcy protection on Jan. 14, securing a $1.75 billion financing package intended to stabilize the company while it reorganizes and refines its physical store network.
Company officials say the restructuring focuses on maintaining stores in markets with the highest concentration of luxury shoppers.
“This strategic optimization is part of our ongoing transformation and rooted in our long-term view of our business,” Saks Global CEO Geoffroy van Raemdonck said in a statement announcing the closures.
The company has said decisions to close stores were based on factors including financial performance and lease economics.
Potential local employment impact
Saks Global has not disclosed staffing numbers for the Palm Desert location. However, department stores of similar size typically employ between 80 and 120 workers, including full-time sales associates, cosmetics specialists, management and support staff.
Company officials said employees affected by store closures will be offered assistance and, where available, transfer opportunities.
Gift cards and closing sales
Customers will still be able to use gift cards at closing locations, but only for a limited period. Gift cards will be accepted for 15 days after liquidation sales begin, after which they will no longer be valid at closing stores.
What comes next
Saks Global said most of the remaining Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman locations will continue operating normally.
The company indicated it has largely completed its initial store-closure plan but will continue discussions with landlords as it finalizes its long-term retail footprint.
For Palm Desert, the closure leaves open questions about the future of the prominent El Paseo storefront and what type of tenant could replace the district’s largest luxury retail space.
City officials and local business groups have long identified El Paseo as a major economic engine for Palm Desert, drawing affluent residents, seasonal visitors and international tourists to the Coachella Valley’s most prominent luxury shopping corridor.
The departure of Saks Fifth Avenue underscores how even legacy luxury retailers are adapting as the industry shifts toward a smaller physical footprint and greater emphasis on e-commerce and experiential retail.
