The Glossy Podcast: Saks's Struggles and Glossy E-Commerce Summit Takeaways — Plus, a Roundtable on the State of Luxury
Release Date: June 6, 2025
Host: Danny Parisi
Guest: Jill Manoff, Editor-in-Chief
Introduction
In this episode of The Glossy Podcast, host Danny Parisi and editor-in-chief Jill Manoff delve into the challenges facing Saks Fifth Avenue amidst its financial struggles and provide insightful takeaways from the recent Glossy E-Commerce Summit held in Miami. The episode culminates in a comprehensive roundtable discussion on the current state and future of the luxury market, featuring industry experts Bradley Carbone, Tanner Graham, and Joelle Grunberg.
Saks Fifth Avenue: Financial Turmoil and Strategic Moves
The episode opens with a critical examination of Saks Fifth Avenue's precarious financial situation. Danny Parisi highlights multiple issues, including rumors of a joint venture to operate Bergdorf Goodman and a substantial $275 million in overdue payments to brands. This financial strain follows an attempted acquisition of Neiman Marcus and raises concerns about Saks's dominance in the U.S. luxury retail market.
Danny Parisi [03:03]: "Saks pretty much owns luxury in the U.S., brands have no negotiating power. Meanwhile, they're not paying brands, which is concerning."
Jill Manoff echoes these concerns, mentioning that Saks has not disbursed payments to brands since December and is relying on a $350 million financing round from SLR Credit Solutions to bolster its liquidity. This strategy, however, only shifts the debt burden, leaving brands uncertain about future payments.
Jill Manoff [07:25]: "They haven't been paid since December. Nothing new there."
The discussion also touches on Saks's controversial moves, such as opening a storefront on Amazon and a partnership with Authentic Brands Group to license Saks Fifth Avenue-branded clothing in Costco. These moves are seen as diminishing the exclusivity traditionally associated with luxury brands.
Jill Manoff [08:17]: "Saks is doing a lot of things that are not very luxurious, like opening a Saks storefront on Amazon."
Glossy E-Commerce Summit: Key Takeaways
Fresh from the Glossy E-Commerce Summit, Danny and Jill share pivotal insights from the event. One significant trend discussed is the evolving relationship between brands and retailers, with a particular focus on the reliability and support provided by partners like Nordstrom and Printom.
Danny Parisi [12:46]: "Nordstrom and Printom both got good reviews from people I talk to in terms of being easy to work with and reliable."
The summit also highlighted the increasing importance of influencer-driven platforms such as Shop My, which received unanimous positive feedback from attendees.
Jill Manoff [12:58]: "Somebody in one larger group said, 'Anybody have anything negative to say why we maybe shouldn't go there?' And like crickets, nobody had anything bad to say."
Additionally, the impact of tariffs on luxury brands was a hot topic, with brands grappling with increased costs and supply chain delays affecting their holiday planning.
Danny Parisi [13:20]: "Brands are already planning holiday 2026 because they're dealing with delays of two weeks to six months."
Roundtable Discussion: The State of Luxury
The latter part of the episode features an in-depth roundtable with three industry experts: Bradley Carbone (Deputy CEO of Luisa Villaroma), Tanner Graham (CEO and Co-Founder of General Idea), and Joelle Grunberg (Partner at McKinsey & Company). The discussion explores the current landscape of the luxury market, highlighting both challenges and opportunities.
Current Market Challenges
Joelle Grunberg sets the stage by outlining three primary factors impacting the luxury industry:
- Stagnation in China: Previously a significant growth driver, China's market has plateaued.
- Shift in Aspirational Consumers: The upper middle class in the U.S. is experiencing economic pressures, reducing discretionary spending.
- Changing Consumer Preferences: A move towards valuing experiences over material possessions.
Joelle Grunberg [22:32]: "The industry is really at a crossroads."
Redefining Luxury
Tanner Graham discusses the overinflation of the luxury market during the pandemic, leading to a necessary "reset" where brands must redefine what luxury means to modern consumers.
Tanner Graham [24:31]: "The luxury market got overinflated... now we're looking towards a recentering of what luxury actually is."
Consumer Behavior and Brand Strategies
Bradley Carbone emphasizes the "identity crisis" within luxury brands, where traditional definitions clash with broader, more inclusive interpretations. He also highlights the importance of storytelling and maintaining clear brand values to build emotional connections with consumers.
Bradley Carbone [32:48]: "Clear storytelling, cultural relevance, and articulation of values help certain brands get ahead in this game."
Impact of Tariffs and Supply Chain Issues
Both Joelle and Tanner address the ramifications of tariffs, noting that they complicate pricing strategies and consumer perceptions. Tanner points out that consumers' awareness of tariffs leads to decreased confidence and cautious spending.
Joelle Grunberg [40:34]: "Some brands have more leeway to increase prices and pass tariffs onto retail prices, while others don’t."
Tanner Graham [42:12]: "Tariffs are compromising consumer confidence, adding to the wait-and-see moment."
The Role of Retail and Experiences
The roundtable underscores the enduring value of physical retail spaces, where consumers can experience products firsthand, enhancing their confidence in high-quality purchases.
Bradley Carbone [38:35]: "Experiences, both physical and digital, are becoming increasingly important."
Future Outlook and Resilience
The experts agree that the luxury market will gradually stabilize as economic conditions improve. Brands that proactively address their challenges, embrace new technologies, and maintain strong narratives are poised to thrive.
Joelle Grunberg [50:33]: "Brands need to be on offense, addressing specific problems to ensure their individual improvement."
Bradley Carbone [54:35]: "Those who rethink their brand identity and strategies during tough times will come out on top."
Conclusion
This episode of The Glossy Podcast provides a critical look at the tumultuous state of Saks Fifth Avenue and the broader luxury market. Through insightful discussions and expert opinions, listeners gain a comprehensive understanding of the challenges and strategic moves shaping the future of luxury retail. The dialogue underscores the necessity for brands to adapt, innovate, and maintain clear, compelling narratives to navigate the evolving landscape successfully.
Key Takeaways:
- Saks Fifth Avenue is grappling with significant financial issues, impacting its relationships with luxury brands.
- The Glossy E-Commerce Summit highlighted the shifting dynamics between retailers and brands, emphasizing the importance of reliable partnerships.
- The luxury market is undergoing a redefinition, influenced by economic pressures, changing consumer preferences, and global market shifts.
- Tariffs pose unique challenges for luxury brands, affecting pricing strategies and consumer confidence.
- Physical retail experiences remain vital in building consumer trust and showcasing product quality.
- The future of luxury hinges on brands’ ability to innovate, maintain strong storytelling, and adapt to changing market conditions.
Notable Quotes:
- Danny Parisi [03:03]: "Saks pretty much owns luxury in the U.S., brands have no negotiating power."
- Jill Manoff [08:17]: "Saks is doing a lot of things that are not very luxurious, like opening a Saks storefront on Amazon."
- Joelle Grunberg [22:32]: "The industry is really at a crossroads."
- Bradley Carbone [32:48]: "Clear storytelling, cultural relevance, and articulation of values help certain brands get ahead in this game."
- Joelle Grunberg [50:33]: "Brands need to be on offense, addressing specific problems to ensure their individual improvement."
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