Saks Fifth Avenue closes Southampton store this past weekend; Water Mill's Citarella also closed

Anemic sales and a declining customer base are responsible for the imminent shuttering of two well-recognized local businesses, including Saks Fifth Avenue in Southampton Village, which has maintained a presence in the village for more than 60 years.

Saks Inc. announced on Tuesday that it will be closing its Southampton store on Saturday. The landmark store has occupied the iconic brick building in the village’s business district—at the intersection of Hampton Road and Main Street, formerly the site of Southampton Town Hall—since the 1970s. Previous Southampton locations stretch back to 1946.

Shutting its doors one day later, on Sunday, is Citarella in Water Mill, where a printed sign posted on the door this week announced the imminent closing, citing a poor customer base.

Likewise, sluggish sales were the reason given for the Saks closure. “The Southampton store did not meet the company’s profitability standards. The planned closing is consistent with our strategy of focusing on our most productive stores,” Saks spokeswoman Julia Bentley explained in an e-mail, noting that, at 15,000 square feet, the Southampton Saks Fifth Avenue is the company’s smallest. “It is very difficult to represent the Saks Fifth Avenue brand in such a small space.”

Asked about sales specifically at the Southampton location, Ms. Bentley replied that Saks does not disclose the sales volume or trends of individual locations.

The store associates were notified Tuesday morning by the store manager, Ms. Bentley said. The Southampton Saks employs approximately 35 people. A statement from Saks said the employees will either be offered the opportunity to transfer or receive a severance.

The local closing is one of seven for the high-end clothing retailer in the fiscal year 2010.

Ed Stagman, senior vice president for store operations, was roaming the Southampton store Tuesday afternoon, saying he was evaluating what work needs to be done before the business closes to the public Saturday, noting that there is a lot of merchandise to clear from the two-story building. There will be no going-out-of business sale: the store’s merchandise will be transferred to other locations.

Bob Schepps, president of the Southampton Chamber of Commerce, of which Saks has been a member, said he was stunned by the news of the closing and said Saks will be sorely missed in the village. Its closing is a big hit to the local economy, he added.

“I feel for the 35 employees that will be looking for work,” Mr. Schepps said, adding that the chamber will try to help the affected workers by reaching out to its Saks contact and posting local job openings on the chamber’s website.

The building Saks is leaving behind has been owned by Robert Rattenni of East Hampton since 2002. He said Saks’ lease started in 1985 and runs through December 2011. Mr. Rattenni said Wednesday morning he has received nearly a dozen calls from a wide variety of potential tenants. After a long stay in the community, he said it found it “unfortunate” that Saks is leaving, but he is hopeful to have a new tenant in place by the spring.

Meanwhile, Citarella has been one of two anchors of the Water Mill Shoppes plaza off Montauk Highway, along with Blockbuster, which recently announced financial troubles. The posted announcement, which is signed by Joe Guerra, store executive, states that even with the store’s proximity to the newer Citarella in Bridgehampton, which opened in 2009, and difficult economic times, the company had remained optimistic it could still attract a strong customer base in Water Mill.

“It is now obvious that the Bridgehampton and Water Mill locations cannot coexist,” the announcement says.

Store representatives authorized to speak on the subject could not be reached for comment.

Citarella also has a store in East Hampton, which is not slated to close; another of the company’s shops in East Hampton, Tutto Italiano, was shuttered abruptly last week.