Nordstrom to Close Downtown San Francisco Stores

Luxury retailer Nordstrom plans to close both of its downtown San Francisco stores because of dramatic changes in the area in the last few years, according to the company.

In all, the company will walk away from nearly 358,000 square feet of downtown retail space. The Nordstrom Rack store on Market Street will close July 1 and the Nordstrom at Westfield San Francisco Centre will close at the end of August, according to a letter circulated on social media.

Jamie Nordstrom, chief stores officer of the brand, reportedly wrote to staff May 2 announcing the company’s decision not to renew leases at the San Francisco Center Nordstrom store and the Market Street Rack store.

“We’ve spent more than 35 years serving customers in downtown San Francisco, building relationships with them and investing in the local community,” Nordstrom wrote in the letter. “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.”

The company will look closely at other opportunities in the region and will better serve customers by focusing on 16 nearby Nordstrom and Nordstrom Rack locations, as well as online, according to the letter.

The Westfield San Francisco Centre mall’s owner, Unibail-Rodamco-Westfield, said the closure “underscores the deteriorating situation in downtown San Francisco,” according to the San Francisco Standard.

“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,” said a spokesperson in a statement.

“[Unibail-Rodamco-Westfield] 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 statement read.

Nordstrom has 20 new Rack store openings planned this year with more coming in 2024. The company recently announced a new Nordstrom Rack store in Pinole, Calif., and a remodeling of the Valley Fair Nordstrom store in San Jose.

The closures are unfortunate, Daniel Herzstein, director of public policy at the San Francisco Chamber of Commerce, told The Epoch Times.

“San Francisco has really been struggling, especially downtown,” Herzstein said.

Nordstrom’s decision follows announcements from other big-name retail chains that have recently decided to leave the city.

In April, the Whole Foods Market grocery chain decided to temporarily close its 8th and Market Street location because of safety concerns. A rise in street crime, drug use inside and outside the store, and unsafe conditions for patrons and employees contributed to the decision, according to media reports.

In October 2021, Walgreens also decided to close five San Francisco locations because of rampant, organized theft in the city.

Also, in March, Amazon Go announced a decision to close four downtown stores and end its Bay Area expansion, according to Eater San Francisco. Lifestyle clothing retailer Anthropoligie will also close its market Street store May 13, and Banana Republic will shutter its Sutter Street store this spring, reported the San Francisco Standard.

“These store closings are a major bump in the road to bringing back downtown,” Herzstein said. “Right now, we have a once-in-generation opportunity to revitalize our City, and we can’t afford to ignore the public safety and quality of life issues on our streets. We need aggressive investments to make downtown safe, clean, and welcoming to all, and we need them now.”

A number of business owners and residents are fed up with the rise in crime in San Francisco, as California Insider reported in its recent documentary “Leaving California: The Untold Story.”

The news of Nordstrom’s closures come days after a security guard shot and killed a shoplifter at a Walgreens on Market Street. The security guard was arrested after the April 27 incident but San Francisco District Attorney Brooke Jenkins decided not to press charges.

“We ultimately did not believe we could prove beyond a reasonable doubt here that the security guard had committed murder or any other crime,” Jenkins said in a video statement May 1.

Former San Francisco County supervisor Tony Hall said Nordstrom’s decision was not a surprise.

“It doesn’t surprise me at all, because of the crime and the shoplifting,” Hall told The Epoch Times. “It’s outright thievery that goes on in the chain stores in San Francisco. I’ve seen this firsthand with my own eyes.”

The city is “completely out of control right now,” Hall added. Groups of out-of-town youth enter stores in the city and take merchandise and walk out, without fear of being arrested or stopped in any way, he said.

“The only way out is a change of administration—a change in the culture of government that is governing in San Francisco,” Hall said.

Requests for comment from Nordstrom were not returned before press time.