(NewsNation) — Nordstrom and other retailers are closing their doors in downtown San Francisco as urban centers across the country struggle to deal with a lingering drop in foot traffic caused by pandemic-era changes to work habits.
Nordstrom announced it would not be renewing leases for their store at the Westfield Centre and their Market Street Rack location. The company’s downtown stores have been in San Francisco for 35 years.
Nordstrom isn’t the only retailer shuttering San Francisco locations. Anthropologie and Saks off 5th, both also located on Market Street, are shutting down those locations as well. Other stores, including H&M, Abercrombie & Fitch, Gap and Crate and Barrel, have also left the downtown area.
The move is attributed to changes to the downtown atmosphere as San Francisco businesses have been slow to bring people back into the office. The drop in foot traffic and increasing inflation are two factors in the decision.
It’s not just a problem for San Francisco. As workers have been reluctant to return to the office after working remotely during the pandemic, urban areas across the country have struggled. Retail workers and restaurants who relied on commuters are now facing a drop in business.
Some cities have attempted to solve by encouraging business to force workers to return to offices. Mayors have pushed offices to mandate in-person work in cities like New York and Washington, D.C. to try to bolster downtown businesses. While employers and officials may want workers back on site, the vast majority of workers prefer hybrid or remote jobs.
Major retailers like Nordstrom, meanwhile, have increasingly turned their focus to suburban stores.