San Francisco Nordstrom closes after more than 30 years in business amid retail exodus
Market Street Rack, which was located across the street from Nordstrom, closed earlier this summer
A major staple in downtown San Francisco has closed its doors for good.
After more than three decades, the San Francisco Centre Nordstrom store has shuttered – one of the latest retailers to do so as the city experiences a spike in crime.
The more than 30,000-square-foot store, open since 1988, permanently closed on Sunday.
The closure didn’t come as a surprise. Chief Stores Officer Jamie Nordstrom warned employees in a May memo that the company was not planning to renew its lease for the Nordstrom store and the Market Street Rack store, located across the street, due to the changing “dynamics” of the city, FOX Business previously reported.
Market Street Rack closed earlier this summer.
The Nordstrom store was situated inside the Westfield San Francisco Centre, which was already facing its share of problems.
Westfield previously confirmed to FOX Business it was handing the mall back to its lender, citing “challenging operating conditions” in the area that had impacted sales, occupancy and foot traffic. The mall lost other occupants aside from Nordstrom including the Cinemark Century San Francisco Centre 9 and XD movie theater.
Westfield’s decision came days after major hotelier Park Hotels & Resorts announced it had stopped making payments on a $725 million loan for its Hilton San Francisco Union Square and Parc 55 San Francisco properties, pointing to several “major challenges” in the city.
According to recently published data from the University of Toronto, San Francisco has had the hardest time with its rebound from the pandemic, attaining only 32% of its 2019 traffic.
The National Retail Federation (NRF) said that in some cases, “rampant crime and the dangers coupled” have led to a decrease in foot traffic.
“It should come as no surprise that these factors can have a negative impact on businesses and can contribute to the decision to close a specific store location,” the NRF said in a May blog post. “Several national brands recently closed locations in the San Francisco area, with many saying that retail crime was a factor.”