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Saks Fifth Avenue drew a huge outcry for canceling its renowned holiday light show at its Fifth Avenue flagship store after two decades. Many attributed the move to cost-cutting measures.
CEO Marc Metrick told CNBC on Nov. 12 that the retailer decided to nix the light show over the summer after seeing “softer” sales over the past year.
Reports arrived in early August that Saks had been late in paying scores of vendors. Officials from HBC, Saks’ parent company, later indicated the late bills largely reflected the underperformance of Hudson’s Bay in Canada rather than Saks Fifth Avenue or Saks Off 5th.
Vendors were particularly annoyed seeing the late payments as HBC in early July reached an agreement to acquire Neiman Marcus for $2.65 billion.
However, Metrick in his CNBC interview also implied that Saks was looking to explore a new direction for its holiday flagship showcase as it celebrates its 100th anniversary. He said, “We have to be very prudent and careful in where we're investing, but more important, we always knew we were going to want to take a step back and assess.”
Some believe Saks was looking to align with the “quiet luxury” trend, focusing instead on the holiday windows and fashion. The retailer said in a media statement, “In our 100th year, which also marks the anniversary of the flagship, we are celebrating the season by honoring the architectural significance of this iconic building, elegantly illuminating the facade and framing the holiday windows, as well as highlighting the fashion for which Saks Fifth Avenue is known.”
Saks’ holiday windows and light displays showcasing the building’s 10-story façade have become a cultural fixture in Manhattan during the holiday season, complementing nearby visits to the Rockefeller Center Christmas tree and Radio City Rockettes.
The production, which took place every few minutes during the evenings from late November to early January, started modestly in 2004 with 50 giant snowflakes blinking to “Carol of the Bells” before graduating to digital projections in 2010 and then a mix of both physical and digital effects in 2015, according to Vice. Last year featured a stunning Zodiac theme with fireworks in partnership with Dior, while designs from recent years prior included a color-changing castle and a rocket ship-clad Elton John AIDS Foundation collaboration.
Disappointment arrived on social media and elsewhere after the luxury retailer announced this year’s cancellation.
“That's terrible,” Joe Defeo of Brooklyn told CBS News. "That's a tradition, everyone comes to town to see it."
Many consumers felt investing in a light show spectacle was more critical to celebrate the retailer’s 100th year.
“What better year to make an extravaganza?” said KaVonna Holloway, the host of “The Introvert’s Social Hour” podcast, in a video on TikTok.
Posting on LinkedIn, RetailWire BrainTrust member and The Robin Report contributor Warren Shoulberg wrote, “This is a colossal miss and while it might look good on a P&L, it will look terrible on Fifth Avenue for all the disappointed viewers — and Saks shoppers.”
Metrick in his interview with CNBC indicated that the media reaction was overblown. He said, “I think some of the press has gotten away. We’re still lighting the store. We’re going to have music. It’s going to be festive and holiday-focused and of course, we’re going to have our fantastic and beautiful Saks holiday windows, which is truly what we’re known for.”