May 9, 2025
Saks Fifth Avenue joins a string of legacy stores, including Macy's, Bloomingdale's, Old Navy and Nordstrom, in an exodus from Union Square in San Francisco.
The store has been a landmark in the area since 1981. But after nearly 45 years, the high-end retailer said it would close its doors on May 10.
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“While the closing of Saks marks the end of an era, this was not an unforeseen development considering their recent changes to an appointment-only model, and Neiman Marcus acquisition,” said Will Reisman, a spokesperson for the Union Square Alliance in a statement.
Reisman continued in the statement, "We expect the path to downtown revitalization to have its twists and turns — still we are extremely optimistic about the future of Union Square.”
Company maintains a presence across the street
Since the pandemic, Saks Fifth Avenue and other retailers in Union Square have struggled with the changes in foot traffic.
Last year, the iconic store transitioned to an “appointment only” model. Presumably, the luxury retailer intended that this change would make the store more sustainable.
Additionally, Saks’ parent company acquired the Neiman Marcus Group in December 2024. With a Neiman Marcus location essentially across the street from Saks Fifth Avenue, the parent company seemed unwilling to maintain such a large presence in Union Square.
“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,” a Saks Global spokesperson said in a statement.
With this store closing, the first question is where the employees will go. For some, the answer lies right across the street.
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The company claims it will offer some employees transfer opportunities to the Neiman Marcus San Francisco location. Since this isn’t possible for every employee, others will receive appropriate separation packages.
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.”
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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.
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Sarah Sharkey is a personal finance writer who enjoys helping people make optimal financial decisions for their situation. She loves digging into the nitty-gritty details of financial products and money management strategies to root out the good, the bad, and the ugly. Her goal is to help readers find the best course of action for their needs.
