Should More Luxury Retail Be Appointment-Only Like Saks Fifth in San Francisco?

Saks Fifth Avenue's flagship store in San Francisco's Union Square will switch to an appointment-only shopping model starting Aug. 28, 2024, likely aiming to offer more personalized service and address concerns about theft and staffing costs.

The move seems to be signaling a rising trend with luxury retailers to adopt appointment-only models. Other examples include Neiman Marcus in Las Vegas, Brunello Cucinelli in New York, and Gucci Salon in Los Angeles. This practice is also becoming more commonplace in Asian countries, especially for VIP clients, according to Amanda Lai, a director at McMillanDoolittle.

In this case, San Francisco's rising retail theft rates may have also played a role in the decision to change models.

The shift will unfortunately result in job cuts at the Union Square location, a spokesperson told the San Francisco Chronicle, though Saks has not detailed the extent. While some upscale retailers continue to do business in Union Square, the area is facing major challenges, including a rising 20.6% retail vacancy rate, per CoStar's data.

This is not the first time Saks has tried out appointment-only shopping. As reported by CoStar, "The luxury chain now has 16 'suites' at hotels operating by appointment only," though this seems to be the first standalone store to test the model.

Users on Reddit have shared varying opinions on the move, with many predicting that it signals the end for Union Square, or at least for department stores in the area. Most also voiced disappointment in the lack of freedom of being able to walk by and browse on a whim. Meanwhile, some workers expressed sadness when they learned of the news.

The change is aimed at catering to a more exclusive clientele but has been met with dissatisfaction from many customers, according to the San Francisco Standard. Shoppers expressed frustration at the loss of spontaneity and accessibility, with some feeling that the new system will make the store seem more elitist. Saks aims to align with luxury market trends, but local sentiment remains negative, with concerns that the store's new approach will drive away regular customers, especially those who like to walk in once in a while or shop when they just happen to be in the area.

Natali Bagamyan, a tourist from Switzerland, told the San Francisco Standard, "Some shopping should feel like it has a bit of spontaneity. If I need to have an appointment, I won’t do it. It’s a bit of a buzzkill."

Appointment-only luxury retail shopping could align well with the trends of "stealth wealth" and "quiet luxury." While some fashion insiders have criticized "quiet luxury" as a reductive trend, it remains popular due to its emphasis on subtlety, quality, and sustainability over ostentatious displays of wealth. This trend, which gained traction through high-profile figures and media portrayals, reflects a shift toward more thoughtful, less conspicuous consumption.

The synergy between appointment-only shopping and these trends lies in the exclusivity and personalized experience that such shopping methods offer. By requiring appointments, luxury retailers cater to a clientele that values discretion and personalized service, enhancing the experience of understated elegance that "quiet luxury" embodies. This approach not only aligns with consumers' desire for high-quality, sustainable goods but also supports the growing trend of valuing privacy and exclusivity over flashy consumption.