Nordstrom has announced the closure of its flagship department store located in downtown San Francisco in addition to a nearby Nordstrom Rack outlet store, citing decreased customer foot traffic and safety concerns. The move is part of a growing trend of store closures in the city, with twenty major stores closing in the past two years alone. With theft in San Francisco making national headlines, property crime has surged by 23% between 2020 and 2022, with burglary and theft headlining the increase.
The decreases in foot traffic can also be attributed to the rise in remote work stemming from the Covid-19 pandemic and the growing popularity of online shopping. Nordstrom also closed their Canadian stores and shifted focus toward discount outlets, which may have also contributed to their decision to close in San Francisco.
The mall where Nordstrom’s is located stated that a growing number of retailers and businesses have left the area due to unsafe conditions for employees and customers, which has prevented any sort of economic recovery in the area. The situation has further exacerbated fears for San Francisco’s already crisis-hit economy, which is already being impacted by the Covid-19 pandemic and political unrest.
Other retailers including Anthropologie and Office Depot Inc have also closed their stores on Market Street, one of San Francisco’s busiest shopping areas, further contributing to the economic downturn in the city. The situation has left city officials grappling with an exodus of large tech companies like Salesforce and Meta Platforms Inc, who have reduced or eliminated their presence in the city.
The situation has prompted the mall’s owner, Unibail-Rodamco-Westfield (URW), to speak out about the safety concerns and economic decline in the city. URW stated that a “growing number of retailers and businesses are leaving the area due to unsafe conditions for customers, retailers, and employees.”
Nordstrom’s announcement has made it clear that the decrease in foot traffic and changes in market dynamics in downtown San Francisco has made it difficult for the company to operate successfully in the area. The retailer plans to focus on the Bay Area and online sales, with sixteen other locations in the area still remaining in operation.
The closure of the Nordstrom stores in San Francisco highlights the ongoing challenges that retailers and businesses are facing in the city. Until significant changes are made, it is likely that the trend of store closures, economic decline, and safety concerns in San Francisco will continue.
