Ross Dress for Less will open a new 40,000-square foot store at 901 Market St. to replace the Saks On Fifth, which has been looking for a sublessor ever since the pandemic.
Dublin bargain clothing retailer has filed building permits to renovate the 10,300 square foot ground floor and the 30,000 square foot lower level. Ross' Union Square store, located at 799 Market St. is only a block from the new location. This could be a bold move to bring big box retailers back to Market Street after years of them abandoning the area.
Julie Taylor, executive Vice President at Colliers, represented Hudson Pacific Properties. Hudson Pacific refused to comment via a representative on Friday.
Uncertain is whether the new location represents a double-down in space or a simple relocation. Ross and Saks spokespersons didn't respond to my requests for comments on Friday. I will update this article if I receive a response.
It is possible that a second store will open. A broker who is not affiliated with the deal said that Ross has been interested in opening a second San Francisco branch for many years to relieve some of the stress. Customers queue up to enter the store.
The publicly traded retailer, NASDAQ: ROST, is not new to defying trends. Ross does not have a strong e-commerce presence, but it is able to generate a steady demand by promising treasure hunt-style bargains. Ross aims to add 100 new stores per year, and it has a portfolio of more than 1,700 nationwide.
Hudson Pacific will sue both its major retail tenants located at 901 Market St. in 2020 -- Saks Off Fifth, and Nordstrom Rack - after they refused to pay rent owed of hundreds of thousands dollars during the pandemic. This is a strategy that some retailers like Gap Inc. have used with relative success.
The landlord dropped its lawsuit against Saks Off Fifth in early 2013, just before a jury trial was scheduled, which indicated a settlement.
Saks Off Fifth, which opened its Southern California store in 2014, signed a 15 year lease at 901 Market. The company had three options for five-year extensions. However, after five years it was looking for a subleaser due to poor performance.
Nordstrom Rack will have to renew its current 45,496-square-foot lease at the corner Market and Fifth streets in 2024. The Seattle discount retailer failed to respond to a Friday request for comments.