The luxury beauty market is in upheaval, and the fallout from Saks Global’s Chapter 11 filings has left everyone asking: Where will high-end shoppers and brands go now? With Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman all affected, the void in the luxury retail landscape is gaping. But here’s where it gets controversial: while many assume legacy department stores like Nordstrom and Bloomingdale’s will swoop in to claim the throne, the reality might be far more complex—and divisive.
Industry insiders are betting on established players like Nordstrom and Bloomingdale’s to emerge as the winners. These retailers have already been ramping up their beauty offerings over the past two years, and the numbers don’t lie. A skincare executive, speaking anonymously, revealed, ‘Brands started pulling away from Saks long before the Neiman Marcus acquisition. Nordstrom and Bloomingdale’s have seen a massive surge in luxury beauty sales—their performance has always been stellar.’ Bloomingdale’s, in particular, has been on a roll, while Nordstrom and Macy’s are doubling down on their beauty investments. Bloomingdale’s unveiled its revamped Manhattan beauty floor in August 2025, and Macy’s followed suit with its Herald Square renovation in November. The strategy? Transforming beauty floors into immersive, experiential spaces.
‘These department stores have elevated their beauty game by investing heavily in it,’ noted TD Cowan analyst Oliver Chen. ‘Their beauty floors are no longer just about products—they’re about creating an experience.’ Chen also highlighted Nordstrom’s legendary customer service and Bloomingdale’s strategic brand partnerships, while Macy’s has been focusing on exclusive brands to differentiate itself. ‘The competition has never been more intense,’ he added.
But this is the part most people miss: the luxury beauty shopper isn’t a monolith. Nationally, Macy’s and Dillard’s are aggressively courting luxury brands, but in New York, the lines are starkly drawn. A Bloomingdale’s shopper, for instance, is less price-sensitive—one of their priciest products is also a top seller. Nordstrom’s luxury customer leans toward brands like Valentino and The Row, while Macy’s shoppers favor Coach, Louis Vuitton, and Gucci. ‘These customers are fiercely loyal to their preferred stores,’ the executive emphasized.
Some argue the obvious winners are Bloomingdale’s and Nordstrom, with the latter making a strategic hire by bringing in Yumi Shin, former chief merchandising officer at Bergdorf. ‘It’s a bold statement to the market,’ said one industry insider. Meanwhile, Bloomingdale’s Olivier Bron has been instrumental in the retailer’s transformation, particularly in key categories.
However, there’s a counterpoint that’s sparking debate: could specialty retailers like Sephora and Ulta Beauty become the new luxury destinations? While some dismiss this idea—one luxury brand head called Sephora ‘not a luxury environment’—others believe the issue is more about demographics than commercial appeal. Trinny Woodall, CEO of Trinny London, pointed out, ‘Sephora’s customer base skews younger, which might not align with classic premium brands targeting Gen X or Boomers.’ She advocates for a more tailored retail experience for luxury brands, suggesting, ‘In the age of AI, people crave either hyper-curated, in-person experiences or complete autonomy online.’
Geography also plays a surprising role, especially in New York. Woodall observed, ‘Brooklyn and downtown shoppers gravitate toward Macy’s, while uptown customers prefer Bloomingdale’s and Nordstrom.’ She even compared Nordstrom’s potential to Paris’s iconic Bon Marché, with its ground floor becoming a hub for discovery brands.
Yet, one executive warns that the short-term gap in the market might be too wide to fill quickly. ‘Where do you sell a $500 fragrance now? When Barneys New York closed, the indie fragrance and skincare market never fully recovered,’ they noted. This raises a critical question: where will emerging luxury brands debut if not at Saks or Neiman’s?
Ed Burstell, cofounder of consultancy Burburs, bluntly stated, ‘If you relied on Saks or Neiman’s as your platform, you’re now without a safety net.’ Sandi Burrows, his cofounder, added, ‘Wholesale was never a sustainable path. Brands need to build their own cult following, something department stores couldn’t provide because they controlled the narrative.’ Burstell concluded, ‘The shopping experience is becoming generic. Brands must take control and forge emotional connections directly with their audience.’
So, here’s the question for you: Will legacy department stores dominate the luxury beauty market, or will specialty retailers and direct-to-consumer strategies redefine the game? And what does this shift mean for the future of luxury retail? Let us know your thoughts in the comments—this debate is far from over.
