Luxury Retail Shops Fleeing San Francisco: A Look into the Giants Leaving the City by the Bay
Saks Fifth Avenue closes San Francisco store following almost half a century of service
Here's what's scorching the online world today on FoxBusiness.com.
Saks Fifth Avenue is shuttering its Union Square outpost in San Francisco come May 10th. This celeb-favored retailer joins an elite club of brands deserting the city by the bay.
In the dog days of summer 2024, the brand announced its intent to embrace an appointment-only model, with those craving the browsing experience forced to hunt elsewhere. Saks has already embraced this new policy in nearby Palo Alto and Napa's Fifth Avenue Club locations.
A Saks Global rep went on record with FOX Business, sharing that the appointment-only format garnered positive engagement and success, but the closure decision was part of their integration strategy as they steer towards long-term growth. Expect to see the gang from Saks serving the Bay Area community at Neiman Marcus San Francisco, Neiman Marcus Palo Alto, Palo Alto's Fifth Avenue Club, Saks.com, and NeimanMarcus.com instead.
(Image source: David Tran / Getty Images)
*BLOOMINGDALE'S ENACTING THE EVICTION NOTICE FOR THEIR DOWNTOWN SAN FRANCISCO STORE*
Our lip-lock with the Saks Global rep also revealed that Bloomingdale's is poised to lock the doors of their San Francisco Centre mall location this late spring. The brand reminisced about their two amazing decades with the city and expressed optimism about a potential return to serve the SF community in the future.
The iconic Saks Fifth Avenue logo, proudly displayed on Wilshire Boulevard's storefront in Los Angeles last April 14th, will have to suffice for now.
Crime in San Francisco has pushed retailers and other businesses to throw in the towel. Establishments like Denny's, Walgreens, Michael Kors, and others have bid adieu to their SF locations. As of 2025, the San Francisco Police Department has recorded over 8,100 crime reports, including 530 robberies and an astounding 4,600 instances of larceny theft.
We reached out to the Union Square Alliance for their two cents on the matter.
FOX Business' Aislinn Murphy added her magic touch to this report.
Behind the Curtain:
Several top-tier retailers are succumbing to the pressure and shutting their shop doors in San Francisco. This exodus is driven by a medley of factors, including:
- Strategic Business Integration: Saks Fifth Avenue is opting for closure as part of their integration plan following the Neiman Marcus acquisition. Despite the appointment-only format's success, the brand has set its sights on long-term growth and serving the area through Neiman Marcus locations[1][3][4].
- Shift to Digital and Consolidation: Online shopping's surge compels retailers to rethink their brick-and-mortar strategy, leading some companies to minimize or shut down underperforming locations to optimize resources[3].
- Market and Consumer Changes: Union Square has witnessed a dip in foot traffic and a shift in consumer behavior, causing sales slumps for some luxury shops. These trends are compounded by broader economic adversities and a growing preference for digital shopping[2][5].
- Competition and Evolving Retail Landscape: The area is seeing new businesses bloom, suggesting that while some luxury shops are fleeing, others see potential in the district. The combination of closures and newcomers reflects a larger metamorphosis of San Francisco's retail scene[3].
- Broader Economic and Social Factors: Financial conditions, crime, and demographic transformations can impact consumer confidence and purchasing choices. These factors may shape retailers' decisions to maintain or relinquish their locations[5].
The exodus epitomizes both strategic business moves and responses to larger market and economic shifts.
- By 2025, the San Francisco Police Department is predicted to have recorded over 8,100 crime reports, including 530 robberies and 4,600 instances of larceny theft, indicating rising crime as a possible reason for retailers leaving the city.
- In late spring, Bloomingdale's is set to close its store at the San Francisco Centre mall, joining the list of luxury retailers like Saks Fifth Avenue that are leaving the city, a trend that is affecting even renowned brands like Neiman Marcus and Michael Kors.
- Business integration strategies, a shift towards digital shopping, changes in market and consumer behavior, competition, and broader economic and social factors are some of the reasons behind the exodus of top-tier retailers from San Francisco, according to sources close to the matter.
- Gary, a Saks Global representative, confirmed that the appointment-only format garnered positive engagement and success, but the closure decision was part of Saks' integration strategy as they steer towards long-term growth in the retail industry.
