Story by Rodrik Cassel
Boarded-up windows and empty sidewalks now dominate San Francisco’s downtown, a stark contrast to the bustling retail hub it once was. Since 2019, the city has lost more than 20 major retail chains, including household names like Nordstrom, Macy’s, and Whole Foods.
“The dynamics of the downtown San Francisco market have changed dramatically,” Nordstrom stated in August 2023. The departure of these anchor tenants has reshaped both the city’s economy and identity. Here’s what’s happening as the city grapples with the consequences of this rapid retail decline.
Downtown’s Retail Exodus
The departure of flagship stores has left visible scars across San Francisco’s central districts. Whole Foods closed its 65,000-square-foot Mid-Market location in April 2023, citing employee safety concerns after only a year in operation. The closure removed a major full-service grocery option, impacting accessibility to fresh food and essential goods for residents and office workers.
Nordstrom followed with the closure of both downtown locations in August 2023, marking the end of its presence in Union Square after over 30 years. Macy’s, a Union Square fixture since 1947, announced plans to shutter its downtown store in February 2024 as part of a broader restructuring.
These closures, along with departures from Old Navy, Anthropologie, Bed Bath & Beyond, and Saks Fifth Avenue, have left prime retail spaces vacant, and the downtown shopping experience has been dramatically diminished.
Anchor Tenants Leave Lasting Scars
Westfield San Francisco Centre, once a bustling shopping hub, defaulted on a $558 million loan by June 2023 and surrendered the property to its lender. Nearly half of the mall’s stores were vacant, reflecting declines in sales, occupancy, and foot traffic. Target also closed three Bay Area stores in October 2023, citing theft and organized retail crime that threatened both employees and customers.
Other retail chains, including Walgreens and CVS, have scaled back significantly, leaving downtown residents with fewer essential services. Each closure has rippled through the local economy, eliminating jobs and undermining smaller businesses that relied on foot traffic from these major anchors. The cumulative impact has made the area increasingly difficult for both shoppers and merchants.
Why Retailers Are Exiting
San Francisco’s retail decline stems from a combination of factors. The shift to remote work has reduced downtown foot traffic, with McKinsey research indicating sustained declines in weekday visitor numbers. Office occupancy remains significantly below pre-pandemic levels, affecting consumer demand for in-person shopping.
Rising crime and deteriorating street conditions have also worsened the environment for retailers. Target specifically cited “theft and organized retail crime” as reasons for closure, while the San Francisco Police Department reported 37 arrests in organized retail theft operations in April 2025. High commercial rents and the pandemic-driven shift to online shopping have created a cycle of closures that continues to depress both revenue and downtown activity.
Community and Economic Impact
The retail exodus has reshaped daily life for downtown residents and workers. Pharmacy closures have created “pharmacy deserts,” forcing longer trips for prescriptions, while the loss of grocery stores and essential retailers reduces convenience and accessibility. Smaller businesses, including food vendors, display designers, and cleaning contractors, have lost clients as anchor retailers depart.
Economically, Union Square’s retail vacancy rate jumped from 6% pre-pandemic to 20.6% by Q1 2024. The Westfield Centre’s $558 million loan default represents one of the most significant commercial real estate failures in recent city history. Analysts note that while other U.S. cities face retail challenges, San Francisco’s speed and scale of flagship closures are unparalleled, highlighting a downtown economy in crisis.
Signs of Recovery
Some retailers have signaled a tentative return to normal. Uniqlo plans to open a new flagship on Market Street in 2026, offering a glimmer of hope for the area’s revival. Yet the fundamental challenges—remote work patterns, safety concerns, high operating costs, and shifting consumer habits—remain formidable.
City officials and business leaders continue to explore solutions to revitalize downtown. Recent crime data indicate overall improvements in San Francisco, although specific areas continue to experience elevated theft rates. Reversing years of closures and vacancies will require sustained investment and collaboration, as the city works to safeguard both its economy and identity in a rapidly changing retail landscape.
Looking Ahead
San Francisco’s downtown retail core has been reshaped by a wave of store closures, reflecting broader trends in remote work, urban safety, evolving consumer habits and theft. The impact is felt across jobs, services, and the vibrancy of city life, leaving streets quieter and once-thriving retail spaces empty.
As some retailers plan a return, the downtown recovery remains uncertain. The city’s response will not only determine economic revival but also define the character and identity of San Francisco for years to come. Observers say that the following steps taken by officials, businesses, and the community will be crucial in deciding whether downtown becomes a model of resilience or a cautionary tale for other urban centers.
Along with the stores so goes the jobs. Most likely never coming back unless the politics change. With prop 50 passing, I am not seeing that happening.
The people that stay will be the takers, not the taxpayers. They will undoubtedly, steal to feed themselves and their families, or feed their drug habits. The Dem’s keep creating their own shitholes and can’t seem to see that they are making it worse.