The Blubber

Nordstrom bid farewell to its longstanding five-story department store in San Francisco, marking the end of a 35-year era. The closure comes amidst a broader retail exodus that has gripped the city, reflecting shifting dynamics in the urban retail landscape.

The closure of the 312,000-square-foot Nordstrom was announced in May, citing the profound shifts in the downtown San Francisco market over recent years. The changing conditions impacted customer foot traffic and the retailer's ability to operate profitably.

Local shoppers expressed sentiments of sadness as they saw the once-vibrant store's doors shutter for the last time. The iconic Nordstrom store, known for its unique features like the memorable spiral escalator, held a special place as an anchor in the city.

Adjacent to this closure, a nearby Nordstrom Rack had already ceased operations last month.

The impact extended beyond just Nordstrom, as Westfield, the shopping mall operator, revealed its decision to relinquish control of the San Francisco mall. Westfield cited challenging operating conditions in downtown San Francisco, resulting in declines across sales, occupancy, and foot traffic.

The San Francisco Centre, once bustling with retail activity at its core, has seen a sharp decline in recent years. Total sales dwindled from $455 million in 2019 to $298 million in 2022, and foot traffic plummeted from 9.7 million visits in 2019 to 5.6 million in 2022, according to Westfield's data.

Westfield's exit represents another setback for San Francisco, a city grappling with economic challenges spurred by the pandemic. The rise of remote work policies in Silicon Valley and beyond led to a migration of white-collar workers away from the city. Even after three years, corporate presence hasn't rebounded to pre-pandemic levels, with office vacancies reaching a 30-year peak in San Francisco. This dynamic underscores the ongoing transformation in how cities and their retail landscapes adapt to evolving economic and work trends.