Saks Fifth Avenue to close its women's store but keep its men's shop at Brookfield Place in New York

Key Points
  • The Saks Fifth Avenue women's shop at Brookfield Place downtown in New York is set to close Jan. 5, a spokesperson confirmed to CNBC.
  • The company said it was using the shop as a "test concept" to see what women wanted.
  • Saks will be keeping its men's store open at Brookfield Place, and Brookfield told CNBC it will be bringing in a new "amenity-focused" tenant to fill the women's space.
Saks Fifth Avenue in New York.
Adam Jeffery | CNBC

Saks Fifth Avenue is shutting its women's store at Brookfield Place downtown in New York, roughly two years after it opened. But the luxury department store operator will be keeping the men's portion of this location open.

The women's shop is set to close Jan. 5, a spokesperson confirmed to CNBC. The company said it had been using the store as a "test concept" to learn about how women liked to shop in New York. It said it "determined that [its female customers'] preferred format is a combination of our digital channels and our iconic Fifth Avenue flagship."

"The decision to close this location was not easy, and we intend to transfer as many sales associates to new roles as possible," the spokesperson added.

The closing of this Saks store comes as the retailer's parent company, Hudson's Bay, has been renovating Saks' flagship shop uptown on Fifth Avenue, giving its beauty department a facelift and adding more wellness options for shoppers, as examples. Also next month, Hudson's Bay will shut its flagship Lord & Taylor shop on Fifth Avenue, which is being replaced by co-working operator WeWork.

Meanwhile, other department store chains Nordstrom and Neiman Marcus are growing in New York.

Neiman Marcus is set to open a massive store at the new Hudson Yards development by Related in March 2019. Nordstrom earlier this year opened its first flagship men's store in the city near Columbus Circle, and will open a shop for women right next door next year.

WWD first reported on the Saks Fifth Avenue store closing.

A Brookfield spokesperson told CNBC the mall operator will "soon" announce a new "amenity-focused" tenant to fill the space.

— CNBC's Courtney Reagan contributed to this reporting.