Two Nordstrom stores in San Francisco set to close amid challenging retail landscape

The market dynamics in downtown San Francisco have changed dramatically over the past few years.

U.S. luxury department store chain Nordstrom is preparing to close two stores in San Francisco. According to recent reports, the 40,000-square-foot Nordstrom Rack department store will close July 1 and the 312,000-square-foot Nordstrom Westfield San Francisco Centre will cease operations by the end of August.

“The market dynamics in downtown San Francisco have changed dramatically over the past few years, affecting customer traffic to our stores and our ability to operate successfully… We believe we can better serve our customers by focusing on the 16 nearby Nordstrom and Nordstrom Rack stores and online shopping,” commented Jamie Nordstrom, Nordstrom’s chief store officer.

Nordstrom is far from the first major retailer to leave the area. Previously, Whole Foods Market, Anthropologie, the Gap and Saks Off5th left Central San Francisco. The trend is gaining momentum as office workers move to work remotely.

Nordstrom noted that physical stores are an important part of its business. Specifically, the company plans to open 20 Rack stores in California by the end of 2023 and accelerate the format’s expansion in 2024. In recent years, the company has invested in renovating Nordstrom’s Valley Fair store and upgrading to Walnut Creek and Corte Madera stores.