Saks Off 5th began closing nine U.S. stores starting in January 2026, per a USA Today roundup of retailer closures published on January 7, 2026, with affected locations including Austin, Chicago, East Hanover in New Jersey, and Niagara Falls in New York. If you shop off-price channels for designer discounts, here is what these closings mean for your wallet even if none of the nine stores is near you.
Why does an off-price chain closing stores matter to deal shoppers?
Off-price retail works on volume: chains buy overstock, past-season goods, and canceled orders cheap, then pass part of the discount to you. When a chain shrinks its footprint, two things happen. First, local shoppers in the nine closing markets lose a discount channel and may face thinner selection or higher prices at remaining competitors. Second, the chain's buying power shrinks, which can mean less of the deep-discount designer inventory that makes the format worth a trip.
Related stories: Francesca's liquidation hits final days with 50 to 80 percent off · Eddie Bauer is liquidating every store, and sales end by April.
What should you do if your store is on the list?
Closing locations typically run store-closing sales, but the discount math deserves skepticism. Early markdowns at liquidating stores are often shallow — 10 to 30 percent — and return policies usually end quickly, with all sales becoming final. Before buying, check three things:
- The actual markdown versus the price at nearby competitors or the brand's own outlet site.
- The final day for returns; gift cards may also carry deadlines.
- Whether clearance stock is damaged or incomplete, since liquidation sales rarely accept exchanges.
Does this signal trouble for discount fashion overall?
Not by itself. Off-price has been one of retail's stronger formats, but 2026 opened with a broad round of apparel closings — Eddie Bauer, Francesca's, and others announced wind-downs in the same weeks. For shoppers, the takeaway is practical rather than alarming: discount inventory gets redistributed, not destroyed. When one off-price operator exits a market, competitors like Nordstrom Rack, TJ Maxx, and Burlington typically absorb both shoppers and some of the merchandise flow.
The concrete change to plan around: nine Saks Off 5th locations began closing in January 2026, so confirm your nearest store's status before a special trip, and treat any store-closing discounts as final-sale purchases with no returns.