Nordstrom Announces Closure of Its Downtown San Francisco Stores — Retail Bum

Nordstrom will soon be closing both of its store locations in downtown San Francisco as declining tourism and hybrid work culture have adversely affected foot traffic and the ability to operate successfully.

According to a Budget and Legislative Analyst’s Office report, the pandemic-led shift in work culture has resulted in 147,303 fewer office workers downtown each workday. This shift has directly impacted the city’s physical retail state, with 7,711 retail jobs being lost between 2019 and 2022.

“While similar trends have been observed in cities around the world, the effects have been more significant and long-lasting in San Francisco, owing to the city’s reliance on tourism and the concentration of jobs that can be performed remotely,” the report said.

These challenges have prompted Nordstrom to shut its downtown locations and instead focus on its 16 nearby Nordstrom and Nordstrom Rack stores and online channels while continuing its commitment to the Bay Area market.

Chief Stores Officer Jamie Nordstrom noted in a memo that physical stores are still critical to delivering the company’s “Closer to You” strategy, and Nordstrom remains open to new store locations, relocations, and concepts.