Department store chain Bloomingdale’s will be shutting its flagship outlet in the San Francisco Centre mall, echoing a trend of high-profile closures threatening the city’s struggling retail industry.
A spokesperson for Bloomingdale’s told CBS News Bay Area that the store will be closing in late spring, having spent nearly two decades in San Francisco’s largest mall.
“We are hopeful to be back to serve the San Francisco community in the future and look forward to introducing new ways to provide enhanced service to our loyal local shoppers,” the store said in a statement.
Why It Matters
The departure of Bloomingdale’s, the only remaining anchor tenant at the mall, compounds the issues facing San Francisco’s downtown, and reflects a wider retail exodus in the city.
The real estate consultancy CBRE says that the city’s retail districts have suffered from declining foot traffic, sparked by the rise of remote working opportunities, reduced tourism and concerns over crime.
A pedestrian walks by an entrance to the Westfield San Francisco Centre on June 14, 2023 in San Francisco, California.
A pedestrian walks by an entrance to the Westfield San Francisco Centre on June 14, 2023 in San Francisco, California.
Justin Sullivan/Getty Images
The closure of Bloomingdale’s is expected to affect ongoing lease negotiations at the mall. According to the San Francisco Chronicle, it has recently secured only a few leases with small tenants and is currently looking for a new buyer.
What To Know
Bloomingdale’s is only the latest high-profile closure to hit San Francisco’s downtown in recent times.
In February, Macy’s, which owns Bloomingdale’s, decided to shutter its flagship store in Union Square plaza.
Early 2024 also saw the closure of San Francisco’s only Adidas store, as well as cosmetics retailer L’Occitane, American Eagle Outfitters, North Face and Sephora.
Last week, the fashion brand Michael Kors revealed plans to close its store at the San Francisco Centre mall, and both Safeway and a long-standing Starbucks location have also announced their upcoming closures.
What People Are Saying
Jim Wunderman, president and CEO of the Bay Area Council, told ABC7 News: “There’s certainly a narrative that’s out there, that San Francisco’s better days are behind it, and that there’s a lot of problems, and this announcement by Bloomingdale’s fits the narrative very well.”
Daniel Lurie, mayor of San Francisco, said via X: “Although the Bloomingdale closure is disappointing, I’m energized every day by businesses of all sizes opening and growing in our city. San Francisco has green shoots everywhere, and we continue to work toward the revitalization of the city.”
Real estate consultancy CBRE said in its January 2024 analysis of the San Francisco retail market: “Despite its downtown’s well-publicized challenges, the greater San Francisco retail market has undeniable strengths, and its long-term prospects are buoyed by a local economy capable of producing job growth and higher incomes.”
Lu Chen, San Francisco resident and senior economist at Moody’s Analytics, previously told Newsweek: “The pandemic really changed the pace of the city and, to a certain extent, the lifeline of the city.”
A spokesperson for the mall told KGO-TV in 2023: “A growing number of retailers and businesses are leaving the area due to the unsafe conditions for customers, retailers and employees, coupled with the fact that these significant issues are preventing an economic recovery of the area.”
What Happens Next?
The Centre Mall was originally meant to be put up for auction in late 2024, but this has been delayed several times by lenders, according to The San Francisco Standard.
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