Saks Fifth Avenue to Close Historic Bala Cynwyd Location by April, Ending Decades-Long Presence on City Avenue
BALA CYNWYD, PA. — In a significant reversal of recent assurances, Saks Global announced Tuesday that its Saks Fifth Avenue store in Bala Cynwyd will permanently close its doors. The location, a fixture of the Main Line’s City Avenue retail corridor for decades, is scheduled to cease operations by the end of April 2026.
The closure is part of a broader bankruptcy restructuring plan by parent company Saks Global, which will shutter eight Saks Fifth Avenue locations and one Neiman Marcus store nationwide. The decision marks the end of the luxury retailer’s physical footprint in the immediate Philadelphia region, leaving the Neiman Marcus at the King of Prussia Mall as the company’s sole remaining luxury outpost in the area.
Deep Search: A Sudden Shift in Strategy
The announcement comes less than a month after reports indicated the Bala Cynwyd location would be spared. In January 2026, following Saks Global’s Chapter 11 filing, company communications suggested that the City Avenue store was not on the immediate chopping block. At the time, the company stated it intended to reorganize financially without liquidating key assets.
However, Tuesday’s filing reveals a pivot in strategy aimed at aggressively cutting costs. CEO Geoffroy van Raemdonck described the move as a necessary step to “reinforce” the brand’s remaining portfolio. This abrupt change highlights the volatility of the current luxury retail market, where legacy department stores are increasingly sacrificing physical square footage to stabilize their balance sheets.
Background: A Retail Institution Facing Redevelopment
The Bala Cynwyd store has served as a luxury anchor for the Bala Plaza complex for decades, outlasting competitors and becoming synonymous with high-end shopping in Lower Merion Township. Its survival was unique; as other department stores fled to mega-malls like King of Prussia, this standalone location maintained a loyal client base on the edge of Philadelphia.
The site itself is already the subject of ambitious future plans. In 2023, the Bala Plaza complex was sold to a new ownership group with approved plans to transform the area into a mixed-use “live-work-play” campus. This redevelopment is set to include residential units, a hotel, and new retail spaces. While the Saks closure removes a historic anchor, it may inadvertently accelerate these modernization efforts, freeing up a massive parcel of prime real estate for the envisioned transformation of the City Avenue District.
Objections and Counter-Perspectives
While the loss of Saks is a blow to local heritage, market analysts argue the impact on the region’s luxury consumers may be “mixed but limited.” Shoppers in Montgomery County still have access to the Neiman Marcus in King of Prussia, which continues to outperform national averages. Furthermore, the closure of the Bala Cynwyd store—often viewed as a legacy location—may allow Saks Global to consolidate its resources into its stronger digital channels and better-performing flagship stores, theoretically ensuring the brand’s long-term survival.
Nevertheless, for the local community and the employees at the 2 Bala Plaza location, the news contradicts the stability promised just weeks ago, raising questions about the transparency of the restructuring process.
The store will remain open for final sales through April, after which the property will likely be turned over for the next phase of City Avenue’s redevelopment.
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