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June 1, 2025 marked the end of Saks Fifth Avenue\u2019s presence in Canada, closing the chapter on one of the most ambitious luxury retail expansions in the country\u2019s history. Once viewed as a game-changing arrival for Canadian luxury retail, Saks Fifth Avenue Canada shuttered its final three locations as part of the broader liquidation of its parent licensee, Hudson\u2019s Bay Company (HBC).<\/p>\n
For Shayne Stephens, who served as Director of Marketing for Saks Fifth Avenue in Canada during its launch years, the closure evokes both professional pride and deep disappointment. In an interview, Stephens offered an insider\u2019s perspective on how Saks entered the Canadian market with enormous fanfare \u2014 and how it eventually collapsed under structural mismanagement and shifting retail dynamics.<\/p>\n
A Highly Anticipated Arrival<\/strong><\/h2>\n\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2025\/06\/IMG_3895-1.jpg\")
Shayne Stephens<\/figcaption><\/figure>\n<\/div>\n\u201cWhen I left Holt Renfrew to build out the marketing strategy for Saks in Canada, I had never seen such excitement for a brand entering the country,\u201d Stephens recalled. \u201cEvery campaign exceeded expectations. We had a palpable buzz.\u201d<\/p>\n
Saks Fifth Avenue officially entered the Canadian market on February 18, 2016, with the opening of its flagship store in Toronto at CF Toronto Eaton Centre. Spanning approximately 150,000 square feet inside the eastern portion of Hudson\u2019s Bay\u2019s historic Queen Street building, the store launched with great fanfare. Notably, it featured a Pusateri\u2019s-operated food hall, designed to bring an elevated culinary experience to the luxury shopping environment. A second Toronto store at CF Sherway Gardens followed just a week later.<\/p>\n
\u201cThere was a clear strategy to exceed expectations,\u201d said Stephens. \u201cWe staged events with Cindy Crawford, Fern Mallis, artist Shantell Martin, Steve Aoki, and others. Every activation was thoughtfully designed to give Canadians a taste of international luxury culture.\u201d<\/p>\n
Saks initially planned for five full-line stores across Canada: two in Toronto, one in downtown Vancouver, one in downtown Montreal, and one in Calgary. However, after the early openings, expansion stalled. \u201cWhen I was hired, they told me five stores. But after Toronto and Calgary, the Vancouver and Montreal plans were put on hold indefinitely,\u201d Stephens explained.<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2025\/06\/image-9.png\")
Women\u2019s designer department on the third floor of Saks Fifth Avenue in downtown Toronto (Hudson\u2019s Bay Queen Street\/CF Toronto Eaton Centre), 2016. Photo: Saks Fifth Avenue<\/figcaption><\/figure>\nThe Early Success: Toronto\u2019s Flagship Exceeds Expectations<\/strong><\/h2>\nThe Queen Street flagship was an immediate hit. According to Stephens, the store quickly became one of Saks Fifth Avenue\u2019s top-performing locations globally.<\/p>\n
\u201cIn its first year, the Eaton Centre store was already the number three store in the company, behind only New York and Brickell in Miami,\u201d he said. \u201cSales well exceeded $100 million in year one. The excitement around the opening was enormous, and we leveraged that momentum aggressively.\u201d<\/p>\n
Meanwhile, the CF Sherway Gardens location, which spanned roughly 143,000 square feet, saw slower traction but eventually stabilized. \u201cSherway was a different beast. It took a bit longer to build, and while it never hit Eaton Centre\u2019s numbers, it was still producing solidly,\u201d Stephens added.<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2025\/06\/image-11.png\")
Saks Fifth Avenue CF Sherway Gardens in 2016. Image: Alex Rebanks Architects<\/figcaption><\/figure>\nCalgary: An Expansion That Never Fully Materialized<\/strong><\/h2>\nThe third Saks Fifth Avenue store opened in February 2018 at CF Chinook Centre in Calgary, occupying 115,000 square feet in a former Zellers space. However, this location struggled from the outset.<\/p>\n
\u201cCalgary was never a true Saks store,\u201d Stephens admitted. \u201cIt lacked the full luxury brand matrix and never carried the kind of high-end inventory we envisioned. It almost felt like a nice Hudson\u2019s Bay store with a Saks sign on it.\u201d<\/p>\n
Unlike the Toronto locations, Calgary\u2019s store did not feature a food hall or extensive high-end brands. The sales challenges reflected the city\u2019s volatile economic environment, particularly during Alberta\u2019s oil price downturns.<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2025\/06\/image-14-1200x911.png\")
Saks Fifth Avenue at CF Chinook Centre in Calgary, 2023. Photo: Saks Fifth Avenue<\/figcaption><\/figure>\nThe Role of Hudson\u2019s Bay Company<\/strong><\/h2>\nWhile Saks Fifth Avenue remained a distinct luxury brand in the U.S., its Canadian operations were fully controlled by the Hudson\u2019s Bay Company, which had acquired the U.S. retailer in 2013. In Canada, Saks was effectively licensed to operate under HBC\u2019s banner, and the integration was not without tension.<\/p>\n
\u201cThere was always a kind of eye-rolling dynamic between Saks and Hudson\u2019s Bay,\u201d Stephens recalled. \u201cSaks was luxury, and Hudson\u2019s Bay was not. There was friction anytime Hudson\u2019s Bay attempted to give direction to Saks.\u201d<\/p>\n
Stephens emphasized that while many consumers assumed Saks was the parent company, the reverse was true. \u201cPeople would say, \u2018Saks bought Hudson\u2019s Bay,\u2019 and I\u2019d have to correct them \u2014 it was Hudson\u2019s Bay that owned Saks.\u201d<\/p>\n
That ownership structure ultimately contributed to the downfall. When Hudson\u2019s Bay Company entered creditor protection in early 2025, the Canadian Saks stores were bundled into the liquidation.<\/p>\n
\u201cEffectively, Saks Canada was shaved off and included in the Hudson\u2019s Bay bankruptcy while Saks U.S. remains operating under Richard Baker\u2019s ownership and now forms part of his Neiman Marcus and Bergdorf Goodman group (Saks Global),\u201d Stephens explained.<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2025\/06\/image-12.png\")
Dolce & Gabbana and Ferragamo boutiques at Saks Fifth Avenue CF Sherway Gardens in 2016. Image: Alex Rebanks Architects<\/figcaption><\/figure>\nThe Turn in Strategy \u2014 And the Beginning of the End<\/strong><\/h2>\nAccording to Stephens, the early success of Saks Fifth Avenue Canada started to unravel after corporate leadership in New York began imposing U.S.-based strategies on the Canadian operations.<\/p>\n
\u201cA couple of years after opening, we had visiting executives come to Toronto. They started talking about implementing U.S. strategies here. Myself and Stefane Ledoux [Saks Canada\u2019s first hire] both told them, \u2018That won\u2019t work in Canada,\u2019\u201d Stephens said.<\/p>\n
One executive\u2019s dismissive response marked a turning point. \u201cHe leaned back, crossed his legs, and said, \u2018No, guys. We know how to run these big stores.\u2019 I knew then the writing was on the wall. I resigned about three months later.\u201d<\/p>\n
Once the Canadian leadership team departed, the business shifted to a cost-cutting mode. Marketing budgets dried up. Staff turnover accelerated. The stores lost much of their energy and local relevancy.<\/p>\n
\u201cAfter I left, there was essentially no marketing. I would walk through the store and not recognize a single associate anymore,\u201d Stephens said. \u201cMomentum was lost, and luxury retail is very much about sustained excitement.\u201d<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2025\/06\/image-15-1200x900.png\")
Inside Saks Fifth Avenue at CF Chinook Centre in Calgary, 2023. Photo: Victor Law<\/figcaption><\/figure>\nThe Unique Challenges of Selling Luxury in Canada<\/strong><\/h2>\nStephens noted that luxury retail operates differently in Canada compared to the U.S., particularly for high jewelry and ultra-luxury categories.<\/p>\n
\u201cIn the U.S., high jewelry events generate enormous immediate sales. In Canada, those same events generate sales \u2014 but often spread over six months,\u201d he explained. \u201cThe Canadian consumer is more humble in their purchasing behaviour. There\u2019s less \u2018flex culture\u2019 than what you see in places like New York or Miami.\u201d<\/p>\n
He added: \u201cIt\u2019s not that Canadians aren\u2019t buying luxury \u2014 but when they do, it\u2019s often done very quietly, and sometimes even directly at the runway shows in Europe, bypassing local retail altogether.\u201d<\/p>\n
This cultural nuance was often misunderstood by Saks\u2019 U.S. leadership. \u201cThey expected the same sales cadence as their American stores, but Canada\u2019s market simply doesn\u2019t operate that way,\u201d said Stephens.<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2025\/06\/image-10.png\")
Fifth Avenue Club on the third floor of Saks Fifth Avenue in downtown Toronto (Hudson\u2019s Bay Queen Street\/CF Toronto Eaton Centre), 2016. Photo: Saks Fifth Avenue<\/figcaption><\/figure>\nExpansion Plans That Never Came to Be<\/strong><\/h2>\nPlans for additional Saks locations in Vancouver and Montreal were eventually shelved. Hudson\u2019s Bay tried to sell the downtown Vancouver building where Saks was originally supposed to open. Montreal\u2019s proposed store \u2014 slated for a 220,000-square-foot space behind Hudson\u2019s Bay\u2019s flagship on Saint Catherine Street \u2014 remained permanently on hold.<\/p>\n
\u201cWe always felt Montreal was unlikely,\u201d said Stephens. \u201cThere were always vague excuses related to construction delays or other issues, but in hindsight, it was clear the expansion was stalling.\u201d<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2017\/01\/image-asset-10.jpeg\")
Rendering of the proposed\/unbuilt Saks Fifth Avenue store in Montreal, via HBC<\/figcaption><\/figure>\nThe Broader Collapse of Large-Format Retail<\/strong><\/h2>\nSaks Fifth Avenue\u2019s Canadian collapse mirrored a broader retrenchment of large-format retail. Nordstrom exited Canada in 2023 after a nine-year run, Target departed in 2015 after less than two years, and Holt Renfrew has transitioned largely to a lease model for many of its departments.<\/p>\n
\u201cWe\u2019re witnessing the death of large-format department stores,\u201d said Stephens. \u201cThe dollar per square foot just doesn\u2019t add up anymore.\u201d<\/p>\n
Luxury brands increasingly prefer standalone boutiques where they control the customer experience and client data. \u201cDior, Louis Vuitton \u2014 they want full control. Shop-in-shops inside department stores no longer serve their long-term interests,\u201d he added.<\/p>\n
The broader economic climate, including rising prices, generational wealth gaps, and shifting consumer attitudes toward luxury markups, is also playing a role.<\/p>\n
\u201cThere\u2019s greater awareness now about luxury markups,\u201d Stephens said. \u201cMany younger consumers know they\u2019re paying thousands for handbags that might cost a fraction to produce. They\u2019re less willing to accept those margins.\u201d<\/p>\n![\"\"](\"https:\/\/retailinsider.b-cdn.net\/wp-content\/uploads\/2025\/06\/image-13.png\")
Lower level men\u2019s department at Saks Fifth Avenue CF Sherway Gardens in 2016. Image: Alex Rebanks Architects<\/figcaption><\/figure>\nA Bittersweet Legacy<\/strong><\/h2>\nDespite the disappointment of Saks Fifth Avenue\u2019s closure in Canada, Stephens remains deeply proud of what his team accomplished.<\/p>\n
\u201cIt was the highlight of my career,\u201d he reflected. \u201cThey let us build the Canadian strategy from scratch, and we were able to execute a world-class launch that resonated with Canadians.\u201d<\/p>\n
He pointed to memorable events such as the Canada 150 Gucci Ghost party and intimate conversations with icons like Cindy Crawford as defining moments.<\/p>\n
\u201cIn Canada, they allowed us to be a little edgier, a little rougher around the edges \u2014 and it worked. We captured the excitement Canadians felt about finally having Saks Fifth Avenue here.\u201d<\/p>\n
Today, those memories stand as a testament to what was possible \u2014 and serve as a case study in both the promise and peril of international retail expansion.<\/p>\n
More from Retail Insider:\u00a0<\/h2>\n<\/div>\n
\u201cWhen I left Holt Renfrew to build out the marketing strategy for Saks in Canada, I had never seen such excitement for a brand entering the country,\u201d Stephens recalled. \u201cEvery campaign exceeded expectations. We had a palpable buzz.\u201d<\/p>\n
Saks Fifth Avenue officially entered the Canadian market on February 18, 2016, with the opening of its flagship store in Toronto at CF Toronto Eaton Centre. Spanning approximately 150,000 square feet inside the eastern portion of Hudson\u2019s Bay\u2019s historic Queen Street building, the store launched with great fanfare. Notably, it featured a Pusateri\u2019s-operated food hall, designed to bring an elevated culinary experience to the luxury shopping environment. A second Toronto store at CF Sherway Gardens followed just a week later.<\/p>\n
\u201cThere was a clear strategy to exceed expectations,\u201d said Stephens. \u201cWe staged events with Cindy Crawford, Fern Mallis, artist Shantell Martin, Steve Aoki, and others. Every activation was thoughtfully designed to give Canadians a taste of international luxury culture.\u201d<\/p>\n
Saks initially planned for five full-line stores across Canada: two in Toronto, one in downtown Vancouver, one in downtown Montreal, and one in Calgary. However, after the early openings, expansion stalled. \u201cWhen I was hired, they told me five stores. But after Toronto and Calgary, the Vancouver and Montreal plans were put on hold indefinitely,\u201d Stephens explained.<\/p>\n The Queen Street flagship was an immediate hit. According to Stephens, the store quickly became one of Saks Fifth Avenue\u2019s top-performing locations globally.<\/p>\n \u201cIn its first year, the Eaton Centre store was already the number three store in the company, behind only New York and Brickell in Miami,\u201d he said. \u201cSales well exceeded $100 million in year one. The excitement around the opening was enormous, and we leveraged that momentum aggressively.\u201d<\/p>\n Meanwhile, the CF Sherway Gardens location, which spanned roughly 143,000 square feet, saw slower traction but eventually stabilized. \u201cSherway was a different beast. It took a bit longer to build, and while it never hit Eaton Centre\u2019s numbers, it was still producing solidly,\u201d Stephens added.<\/p>\n The third Saks Fifth Avenue store opened in February 2018 at CF Chinook Centre in Calgary, occupying 115,000 square feet in a former Zellers space. However, this location struggled from the outset.<\/p>\n \u201cCalgary was never a true Saks store,\u201d Stephens admitted. \u201cIt lacked the full luxury brand matrix and never carried the kind of high-end inventory we envisioned. It almost felt like a nice Hudson\u2019s Bay store with a Saks sign on it.\u201d<\/p>\n Unlike the Toronto locations, Calgary\u2019s store did not feature a food hall or extensive high-end brands. The sales challenges reflected the city\u2019s volatile economic environment, particularly during Alberta\u2019s oil price downturns.<\/p>\n While Saks Fifth Avenue remained a distinct luxury brand in the U.S., its Canadian operations were fully controlled by the Hudson\u2019s Bay Company, which had acquired the U.S. retailer in 2013. In Canada, Saks was effectively licensed to operate under HBC\u2019s banner, and the integration was not without tension.<\/p>\n \u201cThere was always a kind of eye-rolling dynamic between Saks and Hudson\u2019s Bay,\u201d Stephens recalled. \u201cSaks was luxury, and Hudson\u2019s Bay was not. There was friction anytime Hudson\u2019s Bay attempted to give direction to Saks.\u201d<\/p>\n Stephens emphasized that while many consumers assumed Saks was the parent company, the reverse was true. \u201cPeople would say, \u2018Saks bought Hudson\u2019s Bay,\u2019 and I\u2019d have to correct them \u2014 it was Hudson\u2019s Bay that owned Saks.\u201d<\/p>\n That ownership structure ultimately contributed to the downfall. When Hudson\u2019s Bay Company entered creditor protection in early 2025, the Canadian Saks stores were bundled into the liquidation.<\/p>\n \u201cEffectively, Saks Canada was shaved off and included in the Hudson\u2019s Bay bankruptcy while Saks U.S. remains operating under Richard Baker\u2019s ownership and now forms part of his Neiman Marcus and Bergdorf Goodman group (Saks Global),\u201d Stephens explained.<\/p>\n According to Stephens, the early success of Saks Fifth Avenue Canada started to unravel after corporate leadership in New York began imposing U.S.-based strategies on the Canadian operations.<\/p>\n \u201cA couple of years after opening, we had visiting executives come to Toronto. They started talking about implementing U.S. strategies here. Myself and Stefane Ledoux [Saks Canada\u2019s first hire] both told them, \u2018That won\u2019t work in Canada,\u2019\u201d Stephens said.<\/p>\n One executive\u2019s dismissive response marked a turning point. \u201cHe leaned back, crossed his legs, and said, \u2018No, guys. We know how to run these big stores.\u2019 I knew then the writing was on the wall. I resigned about three months later.\u201d<\/p>\n Once the Canadian leadership team departed, the business shifted to a cost-cutting mode. Marketing budgets dried up. Staff turnover accelerated. The stores lost much of their energy and local relevancy.<\/p>\n \u201cAfter I left, there was essentially no marketing. I would walk through the store and not recognize a single associate anymore,\u201d Stephens said. \u201cMomentum was lost, and luxury retail is very much about sustained excitement.\u201d<\/p>\n Stephens noted that luxury retail operates differently in Canada compared to the U.S., particularly for high jewelry and ultra-luxury categories.<\/p>\n \u201cIn the U.S., high jewelry events generate enormous immediate sales. In Canada, those same events generate sales \u2014 but often spread over six months,\u201d he explained. \u201cThe Canadian consumer is more humble in their purchasing behaviour. There\u2019s less \u2018flex culture\u2019 than what you see in places like New York or Miami.\u201d<\/p>\n He added: \u201cIt\u2019s not that Canadians aren\u2019t buying luxury \u2014 but when they do, it\u2019s often done very quietly, and sometimes even directly at the runway shows in Europe, bypassing local retail altogether.\u201d<\/p>\n This cultural nuance was often misunderstood by Saks\u2019 U.S. leadership. \u201cThey expected the same sales cadence as their American stores, but Canada\u2019s market simply doesn\u2019t operate that way,\u201d said Stephens.<\/p>\n Plans for additional Saks locations in Vancouver and Montreal were eventually shelved. Hudson\u2019s Bay tried to sell the downtown Vancouver building where Saks was originally supposed to open. Montreal\u2019s proposed store \u2014 slated for a 220,000-square-foot space behind Hudson\u2019s Bay\u2019s flagship on Saint Catherine Street \u2014 remained permanently on hold.<\/p>\n \u201cWe always felt Montreal was unlikely,\u201d said Stephens. \u201cThere were always vague excuses related to construction delays or other issues, but in hindsight, it was clear the expansion was stalling.\u201d<\/p>\n Saks Fifth Avenue\u2019s Canadian collapse mirrored a broader retrenchment of large-format retail. Nordstrom exited Canada in 2023 after a nine-year run, Target departed in 2015 after less than two years, and Holt Renfrew has transitioned largely to a lease model for many of its departments.<\/p>\n \u201cWe\u2019re witnessing the death of large-format department stores,\u201d said Stephens. \u201cThe dollar per square foot just doesn\u2019t add up anymore.\u201d<\/p>\n Luxury brands increasingly prefer standalone boutiques where they control the customer experience and client data. \u201cDior, Louis Vuitton \u2014 they want full control. Shop-in-shops inside department stores no longer serve their long-term interests,\u201d he added.<\/p>\n The broader economic climate, including rising prices, generational wealth gaps, and shifting consumer attitudes toward luxury markups, is also playing a role.<\/p>\n \u201cThere\u2019s greater awareness now about luxury markups,\u201d Stephens said. \u201cMany younger consumers know they\u2019re paying thousands for handbags that might cost a fraction to produce. They\u2019re less willing to accept those margins.\u201d<\/p>\n Despite the disappointment of Saks Fifth Avenue\u2019s closure in Canada, Stephens remains deeply proud of what his team accomplished.<\/p>\n \u201cIt was the highlight of my career,\u201d he reflected. \u201cThey let us build the Canadian strategy from scratch, and we were able to execute a world-class launch that resonated with Canadians.\u201d<\/p>\n He pointed to memorable events such as the Canada 150 Gucci Ghost party and intimate conversations with icons like Cindy Crawford as defining moments.<\/p>\n \u201cIn Canada, they allowed us to be a little edgier, a little rougher around the edges \u2014 and it worked. We captured the excitement Canadians felt about finally having Saks Fifth Avenue here.\u201d<\/p>\n Today, those memories stand as a testament to what was possible \u2014 and serve as a case study in both the promise and peril of international retail expansion.<\/p>\nThe Early Success: Toronto\u2019s Flagship Exceeds Expectations<\/strong><\/h2>\n
Calgary: An Expansion That Never Fully Materialized<\/strong><\/h2>\n
The Role of Hudson\u2019s Bay Company<\/strong><\/h2>\n
The Turn in Strategy \u2014 And the Beginning of the End<\/strong><\/h2>\n
The Unique Challenges of Selling Luxury in Canada<\/strong><\/h2>\n
Expansion Plans That Never Came to Be<\/strong><\/h2>\n
The Broader Collapse of Large-Format Retail<\/strong><\/h2>\n
A Bittersweet Legacy<\/strong><\/h2>\n
More from Retail Insider:\u00a0<\/h2>\n<\/div>\n