Saks Fifth Avenue Center of Fashion

Saks Fifth Avenue Center of Fashion

Company type	Retail complex
Industry	Retail
Founded	1974
Defunct	2007
Fate	Demolished and site redeveloped into BLVD Place
Headquarters	Houston , United States
Products	Department store, specialty retail

Saks Fifth Avenue Center of Fashion, which was later renamed Pavilion Saks Fifth Avenue and subsequently Pavilion at Post Oak, was a retail complex located in Uptown Houston. Operating from 1974 until 2007, it initially revolved around a substantial 240,000 sq ft (22,000 m²) Saks Fifth Avenue department store that ceased operations in 1997. Although the mall faced difficulties following the Saks closure, it remained open for an additional decade before shutting down in 2007. The Pavilion was ultimately demolished, and its location has since been incorporated into the BLVD Place mixed-use development.

Inception

In the early 1970s, the owners at the time, Gimbel Bros., aimed to introduce the Saks Fifth Avenue brand to Houston. Their strategy involved launching a large Saks Fifth Avenue store combined with a limited number of specialty retailers, following a successful concept developed by Los Angeles-based Bullock's with their "Fashion Square" centers. The chosen site was approximately 0.8 miles (1.3 km) away from The Galleria, which had opened in 1969 and was anchored by Dallas-based Neiman Marcus, a strong local rival to Saks in the upscale department store market.

Saks Fifth Avenue became the fourth major department store to establish itself in the Uptown or Post Oak district, joining Sakowitz, Joske's, and Neiman Marcus. Construction commenced in 1973, culminating in the opening of the 240,000 sq ft (22,000 m²) Saks store along with its Center of Fashion in 1974, under a lease agreement extending 35 years through 2008.

The mall, an open-air complex officially titled "Saks Fifth Avenue Center of Fashion," was often referred to by several variations such as Saks Fashion Center, Saks Fifth Avenue Center, SFA Center, and Saks Fifth Avenue Mall. Evidence suggests the mall featured a lower level as well, housing a Loews-operated movie theater that opened in July 1974. Other retailers present during this period included Sahadi's Gallery, Courrèges Boutique, and Houlihan's Old Place.

By this time, British American Tobacco (BATUS) had acquired Gimbel Bros., and in 1977 BATUS sold the mall property to Investcorp, a pension fund based in the United Kingdom.

Developments in the 1980s

Between 1987 and 1988, Dallas-based Kenneth H. Hughes Interests undertook a renovation of the mall. This refurbishment introduced a new two-story enclosed wing constructed on what had previously been the front parking area. Along with these physical changes came a rebranding: the center was renamed Pavilion Saks Fifth Avenue (also known interchangeably as Saks Fifth Avenue Pavilion). This new wing debuted toward the end of 1988, marked by an elegant opening event.

The redesigned Pavilion showcased opulent architectural elements including glass-enclosed walkways, floors made from Arizona flagstones, decorative fountains, mahogany handrails, ninety palm trees, and an underground parking garage. New tenants joining this upgraded space featured luxury brands such as Hermès and Christian Lacroix, alongside a relocated branch of Sfuzzi, an Italian-Californian bistro originating from Dallas. Several existing retailers expanded their footprints or moved into the new section during this period.

1990s swift downturn

In 1990, the Pavilion's occupancy rate rose to 90%, yet by 1992, the mall was experiencing a significant decline, with only a single retailer remaining on the upper floor. Although it promoted itself as Houston's equivalent to Rodeo Drive, the Pavilion steadily lost both customers and merchants to The Galleria, which boasted a much larger size, four department store anchors compared to the Pavilion's sole anchor, and a combination of luxury and mainstream retail outlets.

Simultaneously, further west in Houston, Saks shuttered its other Houston SFA location at West Oaks Mall on May 1 of that year; this store had initially opened in 1983.

By 1993, Landmark Cinemas assumed control of the multiplex theater, introducing more independent film screenings alongside popular releases. Nonetheless, the large auditorium spaces lacked the cozy ambiance typical of arthouse cinemas. These theaters ultimately ceased operations in July 1995.

The year 1995 also saw the center face foreclosure, prompting new ownership to explore adding entertainment venues such as a bookstore, dining establishments, or reinstating a movie theater. Despite retaining numerous ultra-luxury tenants, overall occupancy slipped to 70%, with much of the second and third floors vacant. At this point, Saks' long-term commitment to the Pavilion was uncertain.

In early 1996, the mall underwent a second rebranding to "Pavilion at Post Oak," dropping "Saks Fifth Avenue" from its title to better reflect a broader variety of retailers beyond its anchor store.

Departure of Saks

In August 1996, Marshall Field's declared its exit from Texas, planning to close all four of its locations in the state by year's end. That same month, Saks Fifth Avenue revealed plans to acquire three of those stores:

• a 240,000 sq ft (22,000 m²) space at The Galleria, located approximately 0.8 miles (1.3 km) south of Saks' Pavilion,
• Town & Country mall in Houston, roughly 8 miles west of The Galleria,
• and Dallas Galleria.

Saks did not purchase Field's San Antonio North Star Mall branch since it had operated its own store there since 1985.

In 1997, Saks announced intentions to close its Pavilion location and relocate to the newly acquired Galleria site, committing $50 million for that move. In response, Radler Pavilion Ltd., the mall's owner, filed a $130 million lawsuit against Saks, citing that Saks' lease extended through 2008 and prohibited subleasing or converting the space into a discount outlet. Eventually, Saks settled and closed its Pavilion store on September 3, 1997, opening its new location at The Galleria on September 11, 1997.

Continued decline, closure, and demolition

As part of the settlement agreement, Saks launched a new specialty store named Fashion At The Pavilion at its former Pavilion location approximately one month later, opening on October 3, 1997. This outlet offered a curated selection of apparel, jewelry, accessories, and home decor, but ceased operations by June 1998, lasting less than a year. By January 2000, with no anchor tenant remaining, mall occupancy had dropped to just 12%, with only Esther Wulfe, Hermès, and a few dining establishments still operating.

In 2005, the property owner Wulfe & Co., which had taken ownership of the mall, revealed plans to dismantle the complex in stages. This demolition included an adjacent strip mall under their control to clear space for BLVD Place, a higher-density mixed-use development designed to feature luxury retail outlets and restaurants, mid- and high-rise residential buildings, along with a 225-room upscale hotel. The entire project was planned to cover approximately 375,000 sq ft (34,800 m²).

By late 2007, the old Saks building was demolished, although a small number of retailers such as Hermès and Americas continued operating briefly thereafter. The full demolition process concluded by 2012. Currently, the location is occupied by "BLVD Place 6".

References

• "Saks Fifth Avenue expected to build wing at Post Oak store", Houston Chronicle, September 22, 1987
• "Saks Fashion Center to expand", Houston Chronicle, September 23, 1987
• "Mall pays price for exclusiveness - The Pavilion well-heeled but not well-patronized", Houston Chronicle, June 5, 1992
• "Saks landlord files suit, claims breach of contract", Houston Chronicle, August 19, 1997
• "Marshall Field's says adios, Texas/Saks buying two Houston stores", Houston Chronicle, August 29, 1996
• "Saks settles suit with its landlord by agreeing to open another store", Houston Chronicle, August 22, 1997
• "Retail war leaves share of casualties", Houston Chronicle, May 17, 1998
• "Tenant gap to bring sale of Pavilion - Redevelopment likely for upscale retail center", Houston Chronicle, January 7, 2000
• "Amazon Grill: good but inconsistent", Houston Chronicle, June 30, 2000
• "What's in Store - Boutique envy - Many high-end stores are new and improved", Houston Chronicle, January 13, 2008