Saks Fifth Avenue will close its Union Square store in San Francisco less than a year after it shifted to an appointment-only business model.
The five-story luxury department store, located at 384 Post Street, will close on May 10, the San Francisco Chronicle and San Francisco Standard reported.
The closure marks another chapter in Union Square’s retail devolution. The Real Deal previously reported on the likely shuttering of Saks, the latest in a parade of retail exits from the shopping district.
Saks cited its recent $2.7 billion acquisition of Neiman Marcus and a broader integration strategy as reasons for the closure, noting that while the appointment-only format showed “meaningful engagement,” the move aligns with long-term growth plans.
The Neiman Marcus location at nearby 150 Stockton Street, which was included in the acquisition, will remain open. Saks was owned by Canada’s Hudson Bay Company until December when Saks Global, which includes Saks Fifth Avenue, became a separate company, with different ownership and financial obligations.
Saks emphasized that the closure does not signal a wider consolidation in markets where both brands are present. The company has no immediate plans for the soon-to-be-vacant building, where its lease runs until early 2027.
Saks shut down its Saks Off Fifth location at 901 Market Street in 2023 and laid off employees during its transition to appointment-only service last summer. Current staff will be offered opportunities to transfer to Neiman Marcus “where possible.”
The closure is both a symbolic and practical loss for Union Square, which has seen a string of high-profile retailer departures, including Bloomingdale’s and the soon-to-depart Macy’s. The San Francisco Centre mall continues to struggle, contributing to high vacancy rates that have persisted since 2022.
“There’s never been an example like this, where there’s been a city that is thriving in so many ways, with a downtown where half of it is empty or for sale,” Ned Segal, ex-Twitter CFO and the Mayor Daniel Lurie-appointed chief of housing and economic development, said on a panel at the UC-Berkeley Fisher Center for Real Estate-organized event.
On the upside, there have been some recent openings downtown such as Shoe Palace and Fashionphile, and upcoming launches from the Nintendo Store and luxury brand John Varvatos.
Will Reisman of the Union Square Alliance called the Saks closure “the end of an era,” but emphasized that it was not unexpected given shifts in the company’s strategy.
“We expect the path to downtown revitalization to have its twists and turns,” he explained, adding that there is “extreme optimism” about the neighborhood’s future.
— Joel Russell
Correction: This story has been edited to reflect hat Saks was owned by Canada’s Hudson Bay Company until December when Saks Global, which includes Saks Fifth Avenue, became a separate company from Hudson’s Bay, with different ownership and financial obligations.