Jul 7, 2025
In 2023, Nordstrom closed its flagship store in San Francisco after 35 years, leaving some local shoppers sad and disheartened. The company cited the changing "dynamics" of the area and the rising crime as key reasons for pulling out, according to CNN.
"It's a sad day. It's a wonderful store. It's been an anchor in San Francisco," Julie from San Francisco told ABC7 News on the day the store closed.
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"It's kind of depressing, being a native of San Francisco, just seeing how downtown is kind of going away," Denise Alexander from Oakland told ABC7 reporters at the time.
Now, shoppers may soon have a reason to celebrate. Nordstrom is returning to the city — with a catch. The company plans to open a new “Nordstrom Local” storefront at 1919 Fillmore in the Pacific Heights neighborhood, a move many see as a cautious reentry into San Francisco's shifting retail landscape.
A new type of Nordstrom
Rather than a full-scale department store, Nordstrom Local is a smaller-format concept offering online order pickups, returns, tailoring and personal styling appointments. It won’t carry traditional retail inventory.
Colleen Delaney, who lives nearby, sees it as a welcome sign of recovery.
"A lot of the stores have been sitting dormant for a very long time. So, as a neighborhood lover, we're really excited to see some energy coming back into the city," she told ABC7 News.
But not everyone is on board. Dwayne Pugh of SVRN, a local shop nearby, worries a large chain like Nordstrom could increase traffic and parking congestion in an already busy area.
"I don't think it's the most healthy addition. I mean, particularly Nordstrom being this big company, I think there could be smaller businesses that would impact the neighborhood a little bit better," he told ABC7.
Nordstrom isn’t the only major retailer that closed locations due to theft and safety concerns. In the last two years, Target, Walgreens, Old Navy and even Whole Foods have shuttered stores in downtown San Francisco, citing rampant shoplifting and operational challenges post-pandemic.
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So, does Nordstrom’s return suggest that retail theft is no longer a concern?
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New California laws aim to reduce retail theft
According to the National Retail Federation’s 2023 Security Survey, retailers nationwide lost a staggering $112.1 billion to theft in 2022. San Francisco, in particular, became a flashpoint, with KTVU Fox 2 covering shoplifting incidents and security concerns leading many chains to reevaluate their presence in the city.
In response, Governor Gavin Newsom launched a statewide crackdown on retail theft starting in 2025. The initiative has expanded funding for local law enforcement and called for collaboration between law enforcement and the California Highway Patrol in high-crime areas to increase public safety.
According to the governor’s office, $267 million in public safety grants have already been distributed to communities to hire more police and secure more suspects.
Other laws enacted in the state introduce harsher penalties for smash-and-grab robberies, retail and cargo theft and large-scale fencing operations. They allow prosecutors to aggregate theft across counties, expand probation terms, issue retail theft restraining orders and require online platforms to verify high-volume sellers to curb the resale of stolen goods.
These changes could have the potential to encourage retailers like Nordstrom to return. The brand's move to open a Nordstrom Local is more than a symbolic comeback — it’s strategic. By offering services instead of stocking shelves, the retailer likely aims to avoid the challenges faced by its former downtown location.
Without merchandise on display, the new store is far less attractive to would-be thieves. With lower overhead, reduced risk and a more neighborhood-friendly footprint, similar to Target’s smaller “City Target” concept, Nordstrom’s return isn’t just about restoring its presence, it’s creating some protection too.
Whether this new format will be enough to re-establish trust with San Francisco shoppers remains to be seen. But for now, it offers something many residents say they’ve been missing: hope that retail in the city isn’t over just yet.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
