Nordstrom and Nordstrom Rack to close last San Francisco locations

Nordstrom is the latest retailer to depart downtown San Francisco, announcing plans to close both of its stores in the coming months, a spokesperson for the company told SFGATE Tuesday morning.

The 40,000-square-foot Nordstrom Rack on 901 Market St. is set to shutter July 1, while the 312,000-square-foot Nordstrom at Westfield San Francisco Centre, one of the mall's flagship stores, will follow suit and close for good by the end of August, the spokesperson said.

"Decisions like this are never easy, and this one has been especially difficult," read a statement from Chief Stores Officer Jamie Nordstrom. "We've spent more than 35 years serving customers in downtown San Francisco, building relationships with them and investing in the local community. 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 did not immediately reply to SFGATE's request for more information about why the stores are closing. A spokesperson for Westfield told SFGATE the closure of Nordstrom "underscores the deteriorating situation in downtown San Francisco."

"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," the statement from Westfield and its owner, Unibail-Rodamco-Westfield, continued. "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."

Nordstrom said that with both leases set to expire at the end of the year, the company believes it can better serve its customers by focusing on its 16 nearby Nordstrom and Nordstrom Rack locations throughout the Bay Area, including stores in Daly City, San Mateo and Emeryville. While the company said it plans to open 20 new Nordstrom Rack stores this year, with "more to come" in 2024, including a store at Bridgepointe Shopping Center in San Mateo, this means the brand will no longer have a retail presence in San Francisco. (The company shuttered its Nordstrom Rack location at 555 Ninth St. in 2021.)

It's a major development in downtown retail following recent news that Saks Off 5th, which shared a location at 901 Market St. with Nordstrom Rack, will be closing permanently later this fall. Ross Dress for Less taking over the space just a block away from one of its existing stores at 799 Market St. appears to be even more of a possibility than before.

Other recently announced closures in San Francisco's downtown corridor include the Anthropologie in Union Square and the Office Depot on 33 Third Street, as well as CB2, Bed Bath & Beyond and the Container Store.

It's not immediately clear how many employees will be affected by the closure, but the statement from Nordstrom said the company is working with each staff member to "support them through this transition and find new roles within the company wherever possible."