The department store industry just witnessed one of its most dramatic collapses. When Saks Global filed for bankruptcy in early 2026, it marked the end of an ambitious—but fatally flawed—attempt to merge two luxury retail icons. 

For Terry Lundgren, former Chairman and CEO of Macy's, and Jan Rogers Kniffen, one of retail's most respected strategists, the failure was inevitable. "Putting two very weak financially organizations together will not make anything other than one big financially weak organization," Lundgren warned before the deal even closed. 

In this episode of The Retail Pilot, host Ken Pilot brings together two industry veterans who've navigated mergers, bankruptcies, and retail transformation for decades. They reveal what killed Saks Global, why some department stores will survive while others won't, and what the retail landscape will look like in 2026 and beyond.

In this episode you'll learn:

• Why the Saks Global and Neiman Marcus merger was "DOA" from the beginning and what red flags signaled the collapse

• How Terry Lundgren successfully executed one of retail's most successful acquisitions: the May Department Stores deal that created a national Macy's footprint

• Why department stores aren't broken—just overleveraged—and how the right balance sheet can save the model

• The "My Macy's" strategy: How localized assortments and 70 district buying teams drove billion-dollar growth

• The marketplace opportunity: How third-party sellers can expand assortments without inventory risk

• Why physical stores still matter and how to make them "fun" again with experiential retail, restaurants, and curated galleries

• Walmart's dominance: How they're "firing on all cylinders" and taking market share from Target, Kohl's, and JCPenney

• Amazon's retail store struggles and why they should "buy somebody that has stores and let them run it"

• The future in 10 years: Which department stores will survive (spoiler: Macy's, Bloomingdale's, Nordstrom, and Dillard's)

• What it takes to save Saks and Neiman Marcus: A "white knight with deep pockets" and a long-term vision

This episode is essential listening for retail operators managing consolidation and change, investors evaluating the department store sector, vendors navigating complex retail partnerships, and anyone seeking to understand the forces reshaping American retail from two executives who've been at the center of it all.

Don’t forget to subscribe to The Retail Pilot podcast for more conversations with retail industry leaders and visionaries shaping the future of commerce.

If you missed our last episode, where Lizanne Kindler, CEO of Knitwell Group, shares how she leads eight iconic fashion brands generating over $6 billion in revenue and successfully integrated three separate companies into one unified powerhouse, be sure to tune in.

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