Flagships Lead with Innovation, Technology and Merchandise

Lazzareschi says neighborhoods within a few blocks of Union Square now attract interest from retailers.

SAN FRANCISCO—Flagship stores act as leaders for retailers, guiding store portfolios with innovative concepts, technology and merchandise. While luxury brands have used flagship stores for years to connect with customers and grow brand recognition, JLL’s latest research report, Flagship Confidential, shows an increase in retailers across all price points using a flagship store strategy. The report, which looks at 145 flagship stores in four of the most important markets of the country, includes analysis of San Francisco’s flagship status.

“We view San Francisco as one of the leading flagship markets on the West Coast. The city is unique, however, in how compact it is in terms of flagships, compared with the other cities in our study. Nearly all of San Francisco’s flagship stores are concentrated within just a few minutes’ walk of each other in Union Square or its immediate vicinity,” said Ben Lazzareschi, executive vice president, JLL Retail. “This heavy concentration, along with strong general demand from retailers, is a key reason why certain neighborhoods within a few blocks of Union Square have started to attract additional interest from retailers.”