The impending closure of Bloomingdale’s flagship store in San Francisco Centre mall marks a significant downturn in the city’s retail landscape, exacerbating the ongoing challenges facing brick-and-mortar stores. This 330,000-square-foot store, slated to close in March 2025, represents the largest remaining tenant in the beleaguered mall, further jeopardizing its viability. The closure comes less than two years after Nordstrom’s departure from two San Francisco locations, signaling a troubling trend for the city’s retail sector. This departure also underscores the evolving strategies retailers are adopting in response to changing consumer behavior and the rise of e-commerce, with Bloomingdale’s expressing hope of returning to the San Francisco market in a different format at a later date.
Bloomingdale’s exit delivers a blow to San Francisco’s retail recovery efforts, particularly following recent reports suggesting a nascent turnaround. While the city’s overall retail vacancy rate had recently dipped slightly, suggesting a possible stabilization, the closure of such a large anchor store throws a shadow over this positive momentum. Specifically, the Union Square-Post Street area, where the San Francisco Centre mall is located, continues to struggle with high vacancy rates, further highlighting the localized nature of the retail challenges. The mall, already approximately half-vacant following an exodus of retailers and the loan default by former owners Westfield and Brookfield, now faces an even steeper climb toward recovery.
The closure of Bloomingdale’s, the second-largest store in the retailer’s portfolio after its New York flagship, represents a significant loss for San Francisco. The mall, now under the management of receiver Trident Pacific, has been working to attract smaller tenants and is reportedly in negotiations with a theater operator to fill the space vacated by Cinemark in 2023. However, the loss of Bloomingdale’s leaves a massive void that will be difficult to fill, further undermining the mall’s appeal and potentially impacting surrounding businesses. City officials are reportedly lobbying Macy’s, which owns Bloomingdale’s and Bluemercury, to maintain a presence in the Union Square area, recognizing the importance of these anchor stores for the overall health of the retail district.
The changing dynamics of the retail landscape are evident in the uneven distribution of recovery across San Francisco. While some areas like Jackson Square, Inner Richmond, Mission Bay, and Japantown are experiencing a revival, Union Square continues to face significant challenges. The opening of luxury boutiques like Rolex and Patek Philippe near Union Square offers a glimmer of hope, suggesting a potential shift toward high-end retail. However, these smaller luxury stores are unlikely to offset the impact of losing major anchor tenants like Bloomingdale’s and Macy’s, which draw a large volume of shoppers and contribute significantly to the overall vibrancy of the district.
The situation with Bloomingdale’s mirrors the earlier challenges faced by Macy’s, which announced plans in 2024 to close its own flagship store in Union Square. This closure, part of a nationwide downsizing initiative, further contributed to the decline of the area. Macy’s has since listed the property for sale, and while city leaders hope for redevelopment that might include a scaled-down Macy’s presence, the future of the site remains uncertain. The combined loss of both Macy’s and Bloomingdale’s flagships represents a substantial blow to San Francisco’s retail sector and underscores the need for innovative strategies to revitalize the struggling areas.
The city of San Francisco, under the new leadership of Mayor London Breed, faces the daunting task of reversing the negative trend in its retail sector. The closure of Bloomingdale’s presents a significant setback to these efforts and underscores the urgency of finding sustainable solutions. Attracting new businesses, fostering innovative retail concepts, and adapting to the evolving needs of consumers will be crucial for revitalizing the struggling areas and ensuring the long-term health of the city’s retail landscape. While there are pockets of positive growth and the city remains optimistic about its potential, the loss of major anchor stores like Bloomingdale’s highlights the ongoing challenges and the need for a comprehensive and proactive approach to retail recovery.
