‘The end of an era’: Saks Fifth Avenue shutters its iconic San Francisco location after 45 years — joining a number of legacy retailers vacating the bustling Union Square

For locals, the rash of store closings is sad. “I bought my suit at Bloomingdale's only to see a month later that they’re gone,” said Grant Johnson of San Francisco to NBC Bay Area. “I just think these stores are magnificent, I’d like to see them stay, they’re kind of fun to shop in.”

A changing retail environment

Saks Fifth Avenue isn’t immune to the changes happening in downtown San Francisco. Since 2020, once-bustling retail districts of the city have seen declining foot traffic due to a combination of factors, including increased remote work, reduced tourism, and the perception of crime, according to CBRE. In fact, it said Union Square’s foot traffic declined by 45% between pre-pandemic levels and October 2023.

"In the first quarter of 2025, the overall vacancy rate in Union Square was up by 70 bps from the last quarter’s figure to 22.8%," said commercial real estate services firm Cushman and Wakefield. "Despite the increase of the vacancy rate, tenant touring activities were active in the first quarter, showing strong interest from national and international retailers looking for an opportunity in the San Francisco market."

Union Square isn’t down for the count just yet. While the old guard of retailers might be moving out, new retailers are moving in. Newer tenants include Banana Republic, IKEA, a flagship Zara location, World Network, and a highly anticipated Nintendo store opening on May 15. It will be the Japanese company’s second official store in the U.S.

City leaders are pushing for Union Square and other retail locations to thrive. As a part of the city's “Vacant to Vibrant” program, new pop-up retailers will arrive in Union Square soon.