Hudson Bay Company Slashes Neiman Marcus’ Dallas Presence

Neiman Marcus is scaling back its presence in Dallas, closing its headquarters and its flagship downtown store.

The retailer’s parent company, Saks Global, will terminate its lease in NexPoint’s Cityplace Tower, at 2711 North Haskell Avenue, CoStar reported.

Neiman Marcus will exit its 82,000-square-foot space in the 42-story building following its recent acquisition by the Hudson’s Bay Company-owned Saks Fifth Avenue.

Neiman’s lease in the tower, which spans three floors, featured flexible workspace for up to 800 employees. However, Dallas employees averaged 11 days in the office per year, a company spokesman told the outlet.

The company will also close its flagship store at 1618 Main Street, ending over 100 years of operation in the area, the Dallas Morning News reported. The closure, effective March 31, follows a failed attempt to negotiate an agreement with the landlord, which resulted in a notice to terminate the store’s lease, according to Saks’ CEO Marc Metrick

The company is now focusing on its other Dallas locations, notably the NorthPark Center store, where Saks plans to invest $100 million for renovations to enhance luxury offerings.

Neiman Marcus’ legacy dates back to 1907 when Herbert Marcus Sr. opened the first store in Dallas with his sister Carrie Marcus Neiman and her husband, Abraham Lincoln Neiman, catering to oil-rich Texans. The location on Main at Ervay has been in operation since 1914.

Employees affected by the closure will be offered transfer opportunities or separation packages.

There could be consequences to closing the flagship. In May 2022, Neiman Marcus received a $5.25 million economic incentive agreement from the city to keep its headquarters in Dallas and maintain its flagship store downtown. The agreement required the company to create 300 new jobs by 2026 and keep the flagship store open until at least 2031.

— Andrew Terrell