This Week in Retail #114

Digital Breakups, Brand Bets, and a Market in Triage

Happy Monday TWIR Fam,

I hope everyone is staying warm, and more importantly, safe……Winter Storm Fern caused widespread destruction across a huge swath of the United States as it moved from Texas through the Midwest and into the Northeast. The combination of heavy snow, sleet, and freezing rain left over 1 million people without power as ice-laden trees and power lines snapped under the weight of the storm.

Some retailers are kicking off the year in survival mode, as bankruptcies, store closures, and restructurings collide with a handful of high-profile brand bets and IPO plans. From the liquidation of Saks Off 5th’s digital business to record store closures and value retailers accelerating expansion, the industry is entering 2026 facing a widening gap between winners built on efficiency and scale, and legacy players struggling to adapt to a structurally tougher market.

Let’s get into it……

A little update on the Saks front…….Saks Off 5th’s digital operations will be liquidated after the U.S. Bankruptcy Court for the Southern District of Texas approved the move as part of Saks Global’s Chapter 11 restructuring. The liquidation applies only to the off-price e-commerce business, not the full-line Saks Fifth Avenue digital unit. Saks Global owns 80% of the Saks Off 5th digital entity, with the remaining stake held by outside investors including Insight Partners, which led a $200 million investment when the digital business was spun off in 2021. The company cited heavy infrastructure and marketing costs that failed to generate expected returns, while analysts pointed to Saks Global’s high debt levels as a key driver of the collapse.