Why is Nordstrom closing down in San Francisco? Reason explored 

The popular luxury department store, Nordstrom, has announced that it will be closing down its stores in San Francisco. The chain has cited the "dynamics" of the downtown market as one of the prominent reasons behind the tough decision. The chain will close both of its downtown San Francisco stores in the coming months.

The move comes as a result of continuous retail thefts and other such crimes in the downtown San Francisco region. Several other businesses have been leaving the area following similar unsafe conditions and other business risks for customers, retailers, and employees.

As such, the luxury department store chain will shut down its San Francisco Center Nordstrom store and Market Street Rack store across the street.

On Tuesday, May 2, the chain announced the closure of the two stores by sharing a memo with its employees, where Chief Stores Officer Jamie Nordstrom said that the company would not be renewing the lease for its San Francisco Center Nordstrom store and the Market Street Rack store across the street.

Nordstrom to shut down its San Francisco Center and the Market Street Rack store in the coming months (Image via Rob Kim/Getty Images)

The memo also had a message for the employees, with Jamie N., Chief Stores Officer, quoting:

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

The message continued to brief on how things have dramatically changed in the downtown San Francisco market:

"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."

---

Nordstrom will be leaving the San Francisco region with the closure of its two downtown market stores

After serving the downtown San Francisco region for over 35 years, Nordstrom will finally shut its stores in the coming months following unsafe conditions and other similar factors. The popular luxury department store chain will no longer have a presence in the San Francisco region after the closure of the two stores at the San Francisco Center and Market Street Rack.

The last day of business for the chain in Market Street Rack will be July 1 (Image via Gary Hershorn/Getty Images)

As per reports from the chain, the last day of business for Market Street Rack will be July 1, while the San Francisco Center location will close by the end of August.

Nordstrom is not the first business to be leaving the region. Over 20 retailers who have been struggling to deal with high crime in the region have already shut down stores in San Francisco’s Union Square since 2020.

According to the National Retail Federation’s 2022 retail security survey, the San Francisco/Oakland region was ranked as the second-most hard-hit metropolitan area by theft in 2020 and 2021. The region was right behind Los Angeles, while New York City was third, and Houston placed fourth.

Other businesses closing down their San Francisco outlets include Saks Off 5th, Banana Republic, Athleta, and Office Depot. A Whole Foods store shuttered last month following similar unsafe conditions after only being open for a year. A Target store in the region has also taken major steps as it has put toiletries, cosmetics, and other products under lockdown.