Nordstrom has announced plans to close its two downtown San Francisco locations, dealing a significant blow to the city’s retail landscape. The flagship store at Westfield San Francisco Centre will shut down at the end of August, while the Nordstrom Rack on Market Street is set to close on July 1. The company has cited changing market dynamics and deteriorating conditions in the area as the primary reasons for these closures.

Over the past several years, the downtown San Francisco market has experienced a dramatic shift, impacting customer foot traffic and the ability of stores like Nordstrom to operate successfully. Unibail-Rodamco-Westfield, the owner of the Westfield mall where Nordstrom is located, has been more blunt in their assessment, blaming the city for “unsafe conditions” and a “lack of enforcement against rampant criminal activity.”

The closures come at a time when San Francisco is struggling to refill empty offices downtown and in the Financial District due to the pandemic and remote work. Malls have also been losing popularity with shoppers as they increasingly turn to online shopping. Furthermore, incidents of theft in San Francisco have gained national attention, although crime rates have generally fallen over the past six years.