Staff Reports
AT&T’s flagship store in San Francisco is the latest victim of the city’s ongoing retail exodus. The company made the decision to close the Aug. 1 store in light of changing consumer shopping habits, as more and more customers choose to make purchases through digital channels. While AT&T will still maintain a presence in the city through its remaining 10 stores and licensed retailers, the closure reflects a trend that is plaguing San Francisco. In recent weeks, Westfield mall, Cinemark Holdings, Old Navy, Park Hotels & Resorts, and Nordstrom have all announced similar decisions to close their San Francisco locations.
San Francisco's Retail Exodus Continues With Company's Latest Announcement About Flagship Store https://t.co/X1kui2FGfF
— Marlon East Of The Pecos (@Darksideleader2) June 20, 2023
The reasons for the retail exodus are troubling. Park Hotels & Resorts, in a statement explaining the closure of two of San Francisco’s largest hotels, pointed to “concerns over street conditions.” These conditions include rampant drug use and crime, which have made many tourists and residents feel unsafe. The weakening convention calendar through 2027 and a record high office vacancy only exacerbate the problem. Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park, stated that the decision to reduce exposure to the San Francisco market was “in the best interest for Park’s stockholders.”
AT&T is the latest to close its flagship San Francisco location. Newsom and Pelosi's home city is in total freefall.
— Kevin Kiley (@KevinKileyCA) June 16, 2023
AT&T is the latest retailer to announce they are vacating a prime real estate location in San Francisco near Union Square.
Crime and lack of customer traffic is cited as the reason.
San Francisco is failing. pic.twitter.com/Y5NDDFJsjb
— Wall Street Silver (@WallStreetSilv) June 17, 2023
San Francisco’s tourism board launched a $6M ad campaign to overcome the city’s global reputation as a drug and crime-ridden hell hole. Six days later, the owner of two of the city’s biggest hotels announced it was abandoning them because it lost faith that the city can recover. pic.twitter.com/uaZRXWpD3R
— Michael Shellenberger (@shellenberger) June 6, 2023
San Francisco’s tourism board has spent millions attempting to change the city’s negative reputation, but these closings demonstrate the city’s path to recovery remains clouded and elongated by major challenges. Even San Francisco’s iconic retail stores are not immune, as H&M and Old Navy have also announced closures.
It is time for the city’s leaders to address the root causes of these problems and take action to make San Francisco safe and desirable for tourists and businesses alike. Until then, the retail exodus will continue, and the city will continue to cling to its reputation as a “drug and crime-ridden hell hole.”
