NEW YORK -- Saks Fifth Avenue says its holiday light show, a popular New York City tradition, is coming to an end. For years, the department store has attracted visitors with dazzling lights at its flagship store in Midtown, Manhattan.

After nearly two decades of enchanting holiday shoppers with its elaborate light displays, Saks Fifth Avenue suddenly canceled this year’s installation, an about-face from statements made less than a month ago. Rumors of the department store canceling ...