Saks Fifth Avenue to Close Union Square Location in San Francisco
Saks Fifth Avenue has announced plans to permanently close its Union Square location in San Francisco, with the last day of operations set for May 10. This decision comes as part of a broader trend of notable retailers exiting the city’s market, particularly in the luxury segment.
Transitioning to an Appointment-Only Model
Initially, Saks had introduced an appointment-only shopping format at its Union Square store in July 2024, a strategy also implemented at its Fifth Avenue Club locations in Palo Alto and Napa. This change was intended to enhance customer engagement but has ultimately led to the decision to close the store altogether. A spokesperson for Saks Global commented, “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.”
Implications for Employees and Operations
The closure will affect employees at the Union Square location, as Saks Global has stated that transfer opportunities to Neiman Marcus San Francisco will be provided where feasible. Additionally, eligible employees will be offered separation packages. The Union Square Saks store has operated since 1981, marking significant tenure in the prestigious shopping district.
Luxury Retailers Exiting San Francisco
In recent years, San Francisco has witnessed a wave of closures among luxury retailers. Notably, Bloomingdale’s is also set to close its San Francisco Centre location by late spring. The brand expressed its hope to return in the future to better serve the San Francisco community, indicating ongoing challenges in the retail environment.
Concerns Over Retail Viability
The decline in luxury retail presence can be partially attributed to rising crime rates in the city. Data from the San Francisco Police Department shows over 8,100 crime reports in 2025 alone, including approximately 530 robberies and more than 4,600 incidents of theft. This escalating crime has significantly impacted the willingness of retailers to maintain a presence in the area.
Looking Ahead
As Saks Fifth Avenue concludes its operations at Union Square, it will continue to serve customers through other channels, including Neiman Marcus locations in San Francisco and Palo Alto, as well as online through Saks.com and NeimanMarcus.com.
Saks Fifth Avenue location at Union Square in San Francisco. (David Tran / Getty Images)
Conclusion
The shifting retail landscape in San Francisco raises important questions about the long-term viability of brick-and-mortar luxury retailers amid evolving consumer habits and urban challenges. As establishments continue to close, stakeholders will be exploring new strategies to adapt to the dynamic retail environment.
