Saks Fifth Avenue In San Francisco’s Union Square Switches To “Appointment Only” Shopping

According to a company e-mail this week, the Saks Fifth Avenue in San Francisco’s Union Square will be switching to an “appointment only” model next month, effectively barring customers from coming into the store and browsing at any time.

Both the San Francisco Centre Mall, soon to be renamed Emporium Centre San Francisco, and Union Square have been losing businesses for the last several years. At the mall, many large retailers, such as Nordstrom and Cinemark left last year. In the last few months, Hollister, Addidas, and The Lego Store have also departed the City by the Bay.

Meanwhile in Union Square, companies have also been fleeing in the wake of the 2021 and 2022 smash and grab robberies that plagued the area. While multiple boutique stores have left, the biggest recent departure was only a week ago when Macy’s announced that it would be leaving their location of 95 years.

The reason for the departures have been all over the map, ranging from high taxes to low business to the general decline of retail to online shopping competition. But the baseline through every closure so far this decade has been one either stated or heavily hinted thing: crime. Break-ins, shoplifting, flash mob robberies, and so much more have caused small retailers and  big retailers like Walgreens and Target to leave for years. The city has denied that that is the reason for years, but employees, managers, and others have told the Globe that no matter what is said, crime has at least been a factor. For some industries, like food stores, San Francisco has been hit so hard that a new ordinance currently being looked at would require companies to give six months notice of a closure to help plan around it.

2024 has been no exception, with stores such as L’Occitane, Sephora, The North Face, and others leaving the prime San Francisco locations. However, this week, Saks Fifth Avenue in Union Square announced a new policy of “appointment only”, where customers need to contact the store ahead of time to be let in to shop. The model, already in effect at Saks Fifth Avenue stores in places such as Napa and Palo Alto, further limits the options for shoppers in the city.

Saks was vague with details surrounding the decision, simply saying about it “We look forward to serving our San Francisco customers with this new experience.” Crime was not given as a reason, although the tough retail situation was probably a factor, even as rivals leave the city. Nordstrom left last year, with Macy’s set to leave by 2026. It was also announced that layoffs will be affecting the Saks Fifth location, although final details on that are not known.

Appointment Only

“This is a culmination of many things,” said California-based retail store advisor Jessica Winters to the Globe on Friday. “Saks Fifth Avenue had a merger last year with Neiman Marcus and Amazon being involved, so they are looking at the best way to optimize things. You’re right in that there are fewer stores like them in San Francisco now, but that doesn’t necessarily equate to more customers. In fact, less stores often means less foot traffic. The appointment list approach tempers these a bit, but also puts pressure on the customer to buy.

“I don’t want to speculate on the crime and homelessness being a reason. But I will say that, by having people come in by appointment rather than walk in, it does protect the store against mob robberies and other types of robberies that involve a lot of people running in, stealing, then running out. You can still smash and grab, but again, appointments offer some protection there.

“We also have to realize that retail is in an odd place now. Fewer and fewer people are going in store, and that effect only worsens with downtown locations as not as many people go there anymore, at least to shop like that. This way, they still get customers in through more exclusive means, give them a more intimate experience like what you get through more boutique stores and get in revenue through for sure customers. Like any retail store right now, they’re trying to survive, and doing new things to do so.

“What is for sure is that the shopping scene in San Francisco is still suffering.”

Other retail announcements from stores in San Francisco are expected later this year as more leases come to an end soon.