FOURTH AMENDMENT TO CREDIT AGREEMENT

Exhibit 10.4.1

FOURTH AMENDMENT TO

CREDIT AGREEMENT

This Fourth Amendment to Credit Agreement (the “Fourth Amendment”) is made as of the 15^th day of January, 2008 by and among

SAKS INCORPORATED, a corporation organized under the laws of the State of Tennessee, having a place of business at 12 East 49th Street, 18th Floor, New York, NY 10017;

the LENDERS party hereto; and

BANK OF AMERICA, N.A., as successor in interest to Fleet Retail Group, LLC (f/k/a Fleet Retail Group, Inc.), as Agent for the Lenders, a national banking association, having a place of business at 100 Federal Street, Boston, Massachusetts 02110; and

CITICORP NORTH AMERICA, INC., as Syndication Agent; and

WACHOVIA BANK, NATIONAL ASSOCIATION, JPMORGAN CHASE BANK, N.A. and GENERAL ELECTRIC CAPITAL CORPORATION, as Co-Documentation Agents

in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

WITNESSETH

WHEREAS, the Borrower, the Agent, the Syndication Agent, the Co-Documentation Agents and the Lenders have entered into an Amended and Restated Credit Agreement dated as of November 26, 2003 (as amended and in effect, the “Credit Agreement”); and

WHEREAS, the Borrower, the Agent, the Lenders, the Syndication Agent and the Co-Documentation Agents have agreed to amend certain provisions of the Credit Agreement as set forth herein.

NOW THEREFORE, it is hereby agreed as follows:

“(e) As soon as available, but in any event not later than forty-five (45) days after the close of each Fiscal Year, annual forecasts (to include forecasted consolidated balance sheets, income statements and statements of cash flow) for the Borrower and its Consolidated Subsidiaries as at the end of and for each fiscal quarter of the current Fiscal Year.”

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“(b) The Borrower shall, and shall cause each Credit Party and other Material Subsidiary to, permit representatives and independent contractors of the Agent, and any Lender electing to accompany such representatives or independent contractors at its own cost (other than CNAI, whose expenses shall be paid by the Borrower, subject to the provisions of Section 13.7 hereof), to (i) visit and inspect any of its properties (subject to the rights of third party tenants in possession), to conduct audits, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom and to discuss its affairs, finances and accounts with its directors, officers and independent public accountants, at such reasonable times during normal business hours and as soon as may be reasonably desired, upon reasonable advance notice to the Borrower, all at the expense of the Borrower to the extent conducted by the Agent, its representatives or independent contractors; provided, Agent agrees that it will not conduct any such audit and examination described in this clause (i) above unless either an Event of Default exists or the aggregate outstanding amount of Revolving Loans and Letters of Credit exceed $125,000,000 at any time; provided further that, in the event that the aggregate outstanding amount of Revolving Loans and Letters of Credit exceed $125,000,000 at any time in any twelve month period, the Agent may, in its discretion, conduct one (1) such audit and examination described in this clause (i) above in such twelve month period, which audit and examination shall be paid for by the Borrower, and (ii) conduct appraisals of Collateral, independently of or in conjunction with the visits, inspections, audits and examinations provided for in clause (i) above, all at the expense of the Borrower; provided, Agent agrees that it will not conduct any such appraisal described in this clause (ii) above unless either an Event of Default exists or the aggregate outstanding amount of Revolving Loans and Letters of Credit exceed $125,000,000 at any time; provided further that, in the event that the aggregate outstanding amount of Revolving Loans and Letters of Credit exceed $125,000,000 at any time in any twelve month period, the Agent may, in its discretion, at any time in any twelve month period, conduct one (1) such appraisal described in this clause (ii) above in such twelve month period which appraisal shall be paid for by the Borrower. Notwithstanding any limitations contained in clauses (i) and (ii) above, (A) when an Event of Default exists, the Agent or any Lender may undertake as many such audits and appraisals as the Agent, in its discretion, determines, at the expense of the Borrower at any time during normal business hours and without advance notice so

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long as the exercise of such rights shall not unreasonably disrupt the physical operation of retail stores of the Borrower or applicable Material Subsidiary, as the case may be, and (B) if an Event of Default does not exist, the Agent may, in its discretion, undertake additional audits and/or appraisals in any fiscal year, at its expense.”

“(k) Any Guaranty by the Borrower of Debt of any Person that was a Subsidiary of the Borrower at the time of the making of such Guaranty consisting of Capital Leases in an aggregate amount not to exceed $40,000,000.”

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IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be executed and their seals to be hereto affixed as the date first above written.

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