Saks Fifth Avenue has announced it will be shutting down its Union Square store in San Francisco, marking the exit of yet another high-profile retailer from the area. The five-story luxury department store, located at 384 Post Street, will close its doors for good on May 10. The decision comes less than a year after the store transitioned to an appointment-only shopping model, a strategic move that, while showing some initial success, did not prove sustainable in the long term.
In a statement released Wednesday, the company cited recent changes to its business operations, particularly following the acquisition of Neiman Marcus in late 2024. “While we saw meaningful engagement and success through the appointment-only format, we have made this decision as part of our integration process as we focus on long-term growth,” Saks explained.
Despite the closure, Neiman Marcus, which is located just across Union Square, will remain operational. Saks emphasized that the decision does not signal a broader plan to consolidate stores in overlapping markets. The future of the Saks Fifth Avenue building, leased through early 2027, remains undetermined.
Retail Shifts Continue to Impact Union Square
The closure of Saks Fifth Avenue is the latest in a string of significant retail exits from Union Square, adding to a concerning trend for the once-bustling shopping hub. The departure follows similar decisions by other retailers, including Macy’s and several anchor tenants at the nearby San Francisco Centre Mall, both of which have contributed to the area’s retail instability.
Despite these setbacks, there have been some positive developments. New store openings, such as Shoe Palace and Fashionphile, as well as the upcoming launches of a Nintendo Store and the luxury menswear brand John Varvatos, suggest that retail interest in the area is not entirely waning. Real estate agents have reported growing interest from brands seeking to establish a presence in the downtown district.
However, according to first-quarter data, vacancy rates in Union Square Store remain comparable to those in 2022, showing little improvement despite the influx of new retailers. The retail district’s recovery appears to be ongoing, with progress tempered by continued closures and economic uncertainty.
Union Square Store Looks Ahead Amid Challenges
While the loss of Saks is being described as “the end of an era,” local leaders remain hopeful. Will Reisman, spokesperson for the Union Square Alliance, acknowledged the symbolic weight of the closure but emphasized that it was not entirely unexpected. “We expect the path to downtown revitalization to have its twists and turns,” he said. “Still we are extremely optimistic about the future of Union Square.”
As part of the transition, Saks indicated that affected employees would be considered for positions at Neiman Marcus, offering some continuity for staff impacted by the closure. The company had already downsized its workforce when it introduced the appointment-only model last year.
As Union Square Store continues to navigate a fluctuating retail landscape, city officials and business leaders are working to balance optimism with realism. The exit of Saks is a significant moment—but not, they believe, a definitive one.
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