When the pandemic first reached U.S. soil and stay-at-home orders were enacted, it was clear that retailers would suffer huge losses in the near term. If consumers weren’t allowed to enter stores, they wouldn’t spend their money.
But the pandemic’s impact on retailers was by no means short-lived. Ever since the events of 2020, many retailers have struggled to attract customers.
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The pandemic taught consumers of all ages how easy and convenient it is to shop online. And many are still doing more of it.
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Persistent inflation has also forced American consumers to be more choosy with their purchases. Many people are having difficulty putting food on the table and covering the ever-rising cost of rent, leaving little money left over for discretionary retail purchases.
Not shockingly, this shift in consumer behavior has fueled a large number of retail bankruptcies in recent years. And retailers that have managed to stave off bankruptcy have been forced to rethink their strategies and shutter stores whose performance isn’t up to par.
Some cities have been hit harder than others by store closures. One once-thriving downtown is at a point where it seriously needs a lifeline.
Popular retailer to open flagship store in struggling big city.
Image source: Getty Images
San Francisco is grappling with a retail exodus
Over the past few years, several well-known retailers have decided to exit San Francisco, including Old Navy, Nordstrom, and Whole Foods. More recently, Bloomingdale’s closed its iconic Union Square store, the last of its kind within city limits.
As crime and homelessness levels have soared in San Francisco, retailers have been skittish about keeping their doors open.
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The rise of remote work has hurt San Francisco retail as well. Once a giant tech hub, the city has fewer people commuting in regularly. And fewer people entering the city has translated to a broad decline in retail sales.
“There’s certainly a narrative that’s out there that San Francisco’s better days are behind it,” Jim Wunderman, president and CEO of the Bay Area Council, said following the announcement of the Bloomingdale’s closure.
San Francisco desperately needs retailers to give the city a second chance. Thankfully, one well-known name in fashion is making plans to expand its San Francisco footprint.
Zara to open flagship San Francisco store
Zara, an iconic name in fashion, has announced plans to open a new flagship store in San Francisco’s Union Square.
The retailer, which announced last year that it would close its current Union Square location, plans to open a “huge” four-story flagship store a block away. The store is expected to span around 40,000 feet.
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“Union Square is on its way back! San Francisco is on its way back,” Mayor Daniel Lurie said in response. “This expansion is another vote of confidence in our city.”
Zara has two more San Francisco locations: one in the Stonestown Galleria shopping center and one at the struggling San Francisco Centre mall on Market Street, which has consistently lost tenants.
City officials have been trying to lure retailers back to Union Square. To address crime-related concerns, Lurie has created a “hospitality zone” task force to support police in boosting public safety downtown for shoppers and tourists.
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Still, San Francisco may have a long road to a complete revival. The nonprofit Union Square Alliance has been hosting special events and public art in an effort to lure shoppers and retailers alike back to the area.
But Zara’s news is a step in the right direction. And with a few more anchor retailers setting up shop, San Francisco has the potential to become a thriving shopping hub once again.
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