Manhattan’s iconic Saks Fifth Avenue has taken itself out of the running for New York’s coveted casino gaming license.
Saks Global, the parent company of its namesake luxury retailer, Neiman Marcus and Bergdorf Goodman, is no longer pursuing downstate New York gaming and is instead focusing on other “strategic priorities,” a Saks Global spokesperson told CoStar News in an email, declining to provide more details.
The luxury retailer’s attempt to abandon its bid comes as Saks Global, which bought Neiman Marcus in December for a total enterprise value of $2.7 billion, has said it’s closing Neiman Marcus’ downtown Dallas flagship after the holiday season this year. The company has previously said it’s also planning to close a Saks Fifth Avenue store in Palm Beach, Florida, this month.
The moves come as the global market for personal luxury goods, minus the impact of currency translations, dropped 2% in 2024, its first decline in 15 years excluding the pandemic period. This has been concurrent with the fact that younger Generation Z customers’ “advocacy for luxury brands continued to decline,” consultancy Bain & Co. said in a study. Department stores have also lost traffic in part as consumers increasingly shop online, industry professionals have said.
“Saks has announced a few closures in recent months as part of its cost-cutting initiatives,” Sarah Helwig, a vice president at Morningstar Credit, told CoStar News in an email. “The failed casino bid doesn’t come as a major shock given the obstacles to get a license.”
The luxury department store flagship, located at 611 Fifth Ave., by St. Patrick’s Cathedral and Rockefeller Center, originally was said to be planning a casino on the top three floors of the building with the "Great Gatsby"-like scene of servers dressed in black ties handing out champagne flutes to gamblers.
However, Saks’ bid would have faced serious challenges, including complications as a result of the building's landmark status when a renovation is involved, according to Crain’s New York, which earlier reported the decision. The small size of the flagship could also hurt its chances with the state’s consideration, Crain’s reported.
Manhattan’s Community Board 5, which oversees an area that covers the building, has voiced its objection to any casino in the district. Winning community support is a key part of the consideration for the state Gaming Facility Location Board.
Casino contenders
Saks’ departure from the ring of gaming contenders leaves 10 said to be still in the running.
Related Cos. and Wynn Resorts, for instance, have proposed a Hudson Yards casino resort on the far west side of Manhattan. SL Green Realty, Manhattan’s largest office landlord, and Caesars Entertainment have partnered in their Times Square casino bid.
Silverstein Properties plans to develop the Avenir, a hotel, casino, entertainment and residential complex spanning 1.8 million square feet near Hudson Yards.
The Soloviev Group, known for projects such as New York’s iconic Nine W. 57th St. office tower overlooking Central Park, has partnered with casino operator Mohegan in proposing a mixed-use casino resort south of the United Nations headquarters.
Steve Cohen, the New York Mets owner and billionaire hedge fund investor, and his partner, Hard Rock International, recently added an affordable housing proposal to increase their odds of winning to transform some 50 acres around the Citi Field baseball stadium in Queens.
The New York gaming board has said casino application licenses are due June 27, with decisions on the winning bids expected by the end of the year. Contenders have to pay $1 million in application fees to the New York State Gaming Commission while the winning contenders have to pay a $500 million casino licensing fee upfront.
Source: CoStar.com By Andria Cheng
Preview Image: Peter Wilkinson-White
