Bloomingdale’s has announced that it will shut its flagship store in the struggling San Francisco Centre Mall.
It marks the end of the department store chain’s nearly two decades on Market Street. Bosses blamed changes in the retail landscape.
The store is set to close by the end of March, leaving the embattled mall without its last major anchor tenant.
Around half of stores are empty after retailers have fled since the pandemic amid crime in the area. Nordstrom left last year after 40 years.
Bloomingdale’s has 32 departement stores and 21 outlet shops in the US. Owner Macy’s is in the middle of a three-year cost cutting pan that includes mass store closures.
Macy’s plans to shut 150 underperforming stores by the end of 2026. The the first 66 have been named and will stop serving customers in coming weeks.
‘We are saddened to confirm that Bloomingdale’s will officially close its doors in Union Square, San Francisco,’ a Macy’s spokesperson said.
‘While we are committed to this decision, our doors will remain open until late spring 2025..
Bloomingdale’s has announced that it will shut its flagship store in the struggling San Francisco Centre Mall
Bloomingdales, in the former Westfield Mall in downtown San Francisco, will be closing in March
Macy’s now now expects to close 65 locations by the end of the year. Pictured is a previous closure in Houston in 2013
‘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 five-story Bloomingdale’s space was originally leased until 2046, and it remains unclear how the retailer will exit the long-term agreement.
Macy’s is also shutting down its Union Square store and actively searching for buyers for the property.
The San Francisco Centre mall has been plagued by mass vacancies since the pandemic.
Previous owners Westfield and Brookfield Properties surrendered the property to lenders in 2023 after ceasing mortgage payments, and the mall is now under receiver management.
The mall has seen an exodus of high-profile retailers, including Nordstrom, which left last year after 40 years, and brands like Hollister, Adidas, and J. Crew.
Despite promises of recovery, foot traffic has failed to rebound.
Meanwhile, Macy’s continues to face challenges, closing 150 stores nationwide by 2026.
The five-story Bloomingdale’s space was originally leased until 2046
The company’s stock is down 22 percent so far this year
The iconic Macy’s Union Square location is being marketed for sale, leaving the city’s retail future uncertain.
Kazuko Morgan, a veteran retail broker, expressed dismay over the closure.
‘It’s heartbreaking,’ she told the San Francisco Chronicle.
‘San Francisco needs stores like Bloomingdale’s – a mix of luxury and major department stores to attract shoppers.’
The closure underscores the city’s ongoing struggle to revitalize its downtown retail sector amid rising vacancies and dwindling consumer traffic.
Like many department stores, Macy’s has been suffering from dwindling sales amid the stratospheric rise of online rivals and the demise of America’s suburban malls.
Tony Spring was appointed CEO last year and announced a major turnaround effort.
Across the board, stores are being closed as the ongoing ‘retail apocalypse’ forces brick-and-mortar locations to grapple with rising theft and shrinking profit margins.
Up until mid-December, US retailers have shut 7,300 stores – up nearly 60 percent from 2023.
The most recent big retail bankruptcy was Container Store, which filed for Chapter 11 protection on December 22.
Earlier that month, Big Lots said it was beginning ‘going out of business’ sales at all its stores across the US, after filing for bankruptcy in September.
Copyright for syndicated content belongs to the linked Source link
