Nordstrom plans to shutter downtown San Francisco stores
SAN FRANCISCO -- Calling it a difficult business decision and citing deteriorating conditions in the neighborhood, Nordstrom -- the Seattle-based retail giant -- announced Tuesday it was planning to close its sprawling downtown San Francisco mall venue and a nearby outlet store.
The closure was first reported by the San Francisco Business Times.
In a statement emailed to KPIX, Jamie Nordstrom, the company's chief stores officer, said a variety of factors played a role in deciding to shut down the operations.
"Decisions like this are never easy, and this one has been especially difficult," Nordstrom wrote. "But as many of you know, the dynamics of the downtown San Francisco market have changed dramatically over the past several years, impacting customer foot traffic to our stores and our ability to operate successfully."
"With both leases set to expire, and after looking closely at our opportunities in the region, we believe we can better serve our customers there by focusing on our 16 nearby Nordstrom and Nordstrom Rack locations, as well as online."
San Francisco Union Square shopping hub has been slow to recover from the COVID 19 shutdown. Several retailers have left and questions over safety has slowed the return of shoppers.
Nordstrom was one of the anchors to the San Francisco Shopping Centre when it opened in October 1988. The retail hub evolved into the Westfield San Francisco Centre in September 2006.
The store spanned 312,000-square-foot over several floors. The Nordstrom Rack store, meanwhile, is 45,496 square feet and located across the street at 901 Market St.
A spokesperson for the Westfield mall and its owner, Unibail-Rodamco-Westfield, also cited concerns about the safety of the neighborhood.
"The planned closure of Nordstrom underscores the deteriorating situation in downtown San Francisco," the statement sent to KPIX said. " A growing number of retailers and businesses are leaving the area due to the unsafe conditions for customers, retailers, and employees, coupled with the fact that these significant issues are preventing an economic recovery of the area."
"URW has actively engaged with City leaders for many years to express our serious concerns, which are shared by our customers and retailers. We have urged the City to find solutions to the key issues and lack of enforcement against rampant criminal activity. The current environment is not sustainable for the community, or businesses, and we are hopeful the City will implement the changes that are so urgently needed."
The company said it would close the outlet on July 1 and the main store in August.
While the retailer will be ending its presence in San Francisco, it remains bullish on the Bay Area and has plans to expand in the surrounding communities.
The retailer also plans to open a 23,000-square-foot store at the Pinole Vista Crossing shopping center in Contra Costa County this fall.
The company also recently announced plans to bring a 36,000-square-foot store to San Mateo's Bridgepointe Shopping Center with a projected opening in the fall of 2024.
Two new Nordstrom Rack locations were also in the works in Gilroy (spring 2024) and Davis (spring 2025).