Saks Fifth Avenue, After Folding on Casino Project, Turns to Costco
Posted on: May 23, 2025, 12:19h.
Last updated on: May 26, 2025, 12:06h.
- Men’s apparel from Saks Fifth Avenue could soon be sold by Costco
- Saks and Costco have not confirmed the partnership
- Saks recently ditched its pursuit of a casino in New York City
Saks Fifth Avenue recently abandoned its plans to incorporate a boutique high-end casino into the luxury department store’s flagship location in Midtown Manhattan. Saks Global, which includes Saks Fifth Avenue, said it would instead focus “on other strategic priorities.” Those priorities are reportedly coming to light.
Lisa Lockwood of Women’s Wear Daily broke the news that Saks is reportedly in talks to bring its men’s branded apparel to Costco. However, reps from both Saks and the warehouse club declined to comment about the possible partnership.
Saks’ men’s apparel is licensed to New York-based Centric Brands, a global lifestyle brand with expertise in product design, development, sourcing, retail and digital commerce, marketing, and brand building. Centric also did not respond to comment requests.
Costco already sells two Centric men’s brands in Caterpillar and IZOD. Costco also sells many labels from the Authentic Brands Group, including Ted Baker, Nautica, Reebok, Champion, Eddie Bauer, and Quicksilver.
Authentic is part of a joint venture with Saks Global called the Authentic Luxury Group, an “innovative licensing, distribution, and lifestyle” collective that includes Saks, Neiman Marcus, Bergdorf Goodman, Barneys, Herve Leger, Judith Leiber, Vince, and Saks Off 5th.
This week, Authentic struck a deal with Centric to operate Dockers. Lockwood suggests an announcement regarding Authentic “collaborating with its longtime partner Centric on the Saks arrangement” could be forthcoming.
Is Saks Sacking Luxury Brand?
In January 2023, Saks announced plans to transform the top three levels of its Saks Fifth Avenue department store into a boutique Monte Carlo-like casino worthy of James Bond. A separate red carpet-lined entrance with a lobby would have welcomed high rollers to the historic 611 Fifth Ave. property.
Dubbed the Casino on Fifth Avenue, a spokesperson at the time said the gaming facility would be “comparable to the aesthetics and luxury detailing of the Saks Fifth Avenue store.”
A little more than two years later, Saks has folded on its casino vision and is now rumored to be focused on partnering with a store perhaps best known for $1.50 hot dogs.
“First Amazon, now Costco?” asked Nancy Mair, a retail expert and former senior vice president of merchandising at Nordstrom, who is today the president of NCM Consulting. Saks launched an Amazon storefront in May.
Yes, I understand they need to drive sales, increase traffic, and find new customers. And don’t get me wrong — I love Costco. But this feels more like brand dilution than brand evolution,” Mair said.
Mickey Alam Kahn, CEO of the Luxury Roundtable, told Forbes this month that “real luxury is about elevation, not scale.” Kahn warned Saks that it should “beware of cheapening its luxury.”
Saks Casino Had Little Chance
As for the casino, Saks faced long odds of securing one of the three downstate New York casino licenses, which each come with a one-time $500 million fee. Despite exits from Saks, Las Vegas Sands, and Wynn Resorts, eight bids remain for the three licenses.
MGM Resorts and Genting are widely viewed as nearly sure things for two of the concessions. That leaves six pitches for one license.
The remaining gaming firms expected to bid include Caesars Entertainment, Hard Rock International, Mohegan, Saratoga Casino Holdings, Bally’s, and Rush Street Gaming/Greenwood Entertainment.
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Saks’ decision to walk away from its boutique casino dream and instead explore partnerships with mass retailers like Costco marks a striking shift in brand direction. While this may broaden market reach, there’s a fine line between accessibility and losing luxury cachet. It’s a bold strategy, but one that could test the brand’s identity. For deeper insights into such industry moves and more, visit ultrawincom.in.