Less than a year after shifting to an appointment-only model, Saks Fifth Avenue in Union Square is closing, the company announced Wednesday. Its final day will be May 10.
The closure of the five-floor luxury department store is a bruising (but not unexpected) blow for Union Square, which has had a rash of retail departures in recent years. Saks attributed the closure to the evolution of its business in the wake of acquiring Neiman Marcus late last year.
“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,” the company said in a statement.
The Neiman Marcus location across Union Square from the shuttering Saks will remain open, the company said, and the impending closure does not represent “a broader plan to consolidate” in markets that have both stores. The company does not yet have a plan for the Saks building at 384 Post St., which is leased until the start of 2027.
The news comes at a critical juncture for Union Square. Retail momentum in the area has picked up in recent months with the openings of Shoe Palace and Fashionphile, as well as upcoming debuts from the Nintendo Store and luxury menswear shop John Varvatos. Real estate agents have touted increased interest from retailers.
Still, the area has struggled to fill its empty storefronts, and vacancy rates remain stuck near the same levels as 2022, according to first-quarter data. Macy’s impending exit and the grim state of the San Francisco Centre Mall have also been drags on the area’s recovery.
Will Reisman, spokesperson for the Union Square Alliance, described Saks’ closing as “the end of an era” but not “unforeseen” given changes with the brand.
“We expect the path to downtown revitalization to have its twists and turns,” he said. “Still we are extremely optimistic about the future of Union Square.”
Saks, which had already laid off staff when it switched to an appointment-only model last summer, said current employees will be given opportunities to transfer to Neiman Marcus “where possible.”