Nordstrom, the eminent clothing retailer, is set to close its two San Francisco stores this summer, resulting in the loss of approximately 380 jobs.
The decision comes in response amid the ongoing surge in crime within the city, which has significantly impacted businesses and led to a decline in foot traffic.
According to a classified document obtained by The Mercury News, Nordstrom will lay off a total of 379 positions across its Nordstrom department store located in the Westfield Mall and the nearby Nordstrom Rack on Market Street.
The closure of the mall store will affect around 333 employees, while the outlet store will see 46 job losses.
Nordstrom’s Human Resources director, Meghan Hannes, mentioned that some employees may be offered positions at other Nordstrom locations.
The Westfield Mall store is scheduled to shut down by the end of August, with the final day of operation for the Nordstrom Rack set for July 1.
Earlier this month, Nordstrom announced the impending closures in a message to its employees, citing “the deteriorating situation” in San Francisco and the significant changes that have taken place in the downtown market.
“We’ve spent more than 35 years serving customers in downtown San Fracisco, building relationships with them and investing in the local community,” Nordstrom stated this to their employee (Source: KGO-TV)
The closure of Nordstrom’s stores highlights the challenges faced by retailers in San Francisco. The owner of the Westfield Mall, Unibail-Rodamco-Westfield (URW), commented on Nordstrom’s decision, stating, “underscores the deteriorating situation in downtown San Francisco.”
A spokesperson for URW said, “A growing number of retailers and businesses are leaving the area due to unsafe conditions for customers, retailers, and employees, coupled with the fact that these significant issues are preventing an economic recovery of the area.”
The closure of Nordstrom follows the announcement made by another major retailer, Whole Foods Market, which is about to close its downtown San Francisco location after just one year of operation.
The San Francisco Standard reported that at least 20 stores in the city’s Union Square area have shuttered since 2020, indicating the challenging business environment prevalent in the region.
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The decision by Nordstrom to close its San Francisco stores and the subsequent job losses reflect the impact of the persistent crime wave and changing dynamics on retail establishments.