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Saks Global collapse shows struggles of department store model, Kering CEO says

Published by Global Banking & Finance Review

Posted on February 10, 2026

1 min read

· Last updated: February 10, 2026

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Saks Global collapse shows struggles of department store model, Kering CEO says
retail trade financial crisis corporate strategy consumer perception sustainability
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PARIS, Feb 10 (Reuters) - Luca De Meo, the CEO of Gucci-owner Kering, said on Tuesday the crisis at high-end department ​store conglomerate Saks Global shows that the distribution model of department

Kering CEO Highlights Saks Global Crisis and Department Store Challenges

Challenges Facing the Department Store Model

PARIS, Feb 10 (Reuters) - Luca De Meo, the CEO of Gucci-owner Kering, said on Tuesday the crisis at high-end department ​store conglomerate Saks Global shows that the distribution model of department stores needs to be reinvented.

Speaking to reporters after presenting the group's annual results, De Meo said that Kering further needed to cut its reliance on wholesale.

(Reporting by Tassilo Hummel; Writing by Gianluca Lo Nostro; Editing by Bart Meijer)

Key Takeaways

  • Saks Global's collapse signals issues in the department store model.
  • Kering CEO emphasizes the need for a new distribution approach.
  • Kering aims to reduce its dependence on wholesale channels.
  • The luxury retail sector faces significant challenges.
  • Innovative strategies are required for department store survival.

Frequently Asked Questions

What is a financial crisis?
A financial crisis is a situation where the value of financial institutions or assets drops rapidly, leading to a loss of confidence among investors and consumers, often resulting in economic downturns.
What is corporate strategy?
Corporate strategy refers to the overall plan and direction that a company takes to achieve its goals, including decisions about resource allocation, market positioning, and competitive advantage.
What is consumer perception?
Consumer perception is how customers view and interpret a brand or product based on their experiences, beliefs, and attitudes, which can significantly influence their purchasing decisions.
What is sustainability in business?
Sustainability in business refers to practices that meet current needs without compromising the ability of future generations to meet theirs, often focusing on environmental, social, and economic impacts.
What is retail trade?
Retail trade involves the sale of goods and services to consumers for personal use, typically through various channels such as physical stores, online platforms, and direct sales.

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