Neiman Marcus' parent company has changed its mind and is planning to keep the luxury retailer's downtown Dallas store open through the holiday season after repeatedly saying the location would close.
Saks Global announced its decision Friday, just days ahead of the planned closure of the Neiman Marcus store on Monday. In addition, the company is planning to reimagine the historic nine-story building where Neiman Marcus has been operating for a century through a collaboration with the city of Dallas.
The decision was reached after Saks Global met with Dallas city officials and determined to evaluate alternate plans for the building at 1618 Main St. downtown to serve as "a modern fashion, arts and entertainment destination." Those proposals to reimagine the space include offering a luxury retail experience, a curated art exhibition, a fashion and event center, as well as an incubator for fashion design and manufacturing, Saks Global said in a statement.
Terms of the arrangement between Saks Global and the city of Dallas were not disclosed.
Saks Global bought Dallas-based Neiman Marcus at the end of last year in a deal with a total enterprise value of $2.7 billion. Saks Global announced in February it planned to close the downtown Dallas store as well as Neiman Marcus' Dallas headquarters, but it would invest $100 million to upgrade the Neiman Marcus store at the NorthPark enclosed mall that is nearly 7 miles north of the downtown Dallas flagship.
"As we explore opportunities for the downtown store, along with the planned renovation at the NorthPark store, we will evaluate the opportunity to utilize both locations to serve different customer needs in the Dallas market," Saks Global CEO Marc Metrick said in the statement. Saks Global admires the "passion and unwavering dedication" the city of Dallas has for "Neiman Marcus’ storied legacy in Dallas," Metrick said.
The downtown store's Zodiac Room restaurant on the sixth floor and the bridal salon are expected to remain open during the "exploratory period," officials said in the statement.
When it announced the planned closure, Saks Global blamed it on a sliver of land it was unable to keep leasing. The owner of the tract has since donated the land to the city.
City attempts to 'transform downtown'
Dallas City Manager Kimberly Bizor Tolbert said in the statement the city is excited that Saks Global has decided to keep the downtown Neiman Marcus store open as "we explore the opportunity to unlock the potential to transform downtown into an international beacon and economic engine for fashion — just as the Neiman Marcus founders intended when they opened the store more than 100 years ago."
Neiman Marcus is considered to be an inventive retailer with many firsts in the industry, including creating its Holiday Book in 1915, introducing the first U.S. baby registry in 1966 and forming the first retail customer-loyalty program in 1984, according to its website.
"Many of the retail innovations instituted here have had a dramatic effect on stores and manufacturers throughout the country," a historical marker outside of Neiman Marcus' flagship says.
Neiman Marcus, founded in downtown Dallas in 1907, is the last remaining department store in the city's central business district, part of the nation's fourth-largest metropolitan area. The historic building is owned by the retailer, which is using some of the upper floors of the building as office space after abruptly exiting its leased space at Cityplace Tower that served as its headquarters.
Like other retailers, Saks Global appears to be optimizing its real estate footprint. The company is planning to close a Saks Fifth Avenue store in Palm Beach, Florida, in April, according to a spokesperson for Saks Fifth Avenue. The store on Worth Avenue has been open for nearly a century and was at one time the only Saks Fifth Avenue store outside of New York City, according to the retailer's website.
The company is planning to open a Fifth Avenue Club in Palm Beach this fall at The White Elephant hotel to offer personal shopping and style services, according to the spokesperson.
Saks Global recently opened its latest Fifth Avenue Club at The London, a trendy hotel in West Hollywood in the Los Angeles area. The club operates in a private stand-alone suite in the hotel and helps bring appointment-only services for luxury shoppers.