Dive Brief:
- Nordstrom is returning to San Francisco’s Union Square in fall 2027 after a three-year absence, per a Thursday press release. The retailer’s new Nordstrom Rack store is set to open just over a block from where both its flagship store and a previous Rack location closed in 2023.
- In addition to selling off-price inventory, the new 51,500-square-foot store will offer pickup and return services for Nordstrom and Nordstrom Rack online orders. The company’s only other area location is its merchandise-free Local Fillmore hub, which opened in San Francisco's Pacific Heights neighborhood in 2025.
- The retailer said in its release that Nordstrom Rack is the largest source of new customers to Nordstrom, and that it now has 21 Nordstrom stores, 70 Nordstrom Rack stores and six Nordstrom Local locations across California.
Dive Insight:
While the opening of one store shouldn’t necessarily be seen as a sea change, Nordstrom appears to have left at least a little bit of its heart in San Francisco after the company closed up shop on Market Street after 35 years in the city.
In its release, the Seattle-based retailer touted its “deep roots” in the Bay area and said it planned to continue its investments and the expansion of its physical footprint there.
Meanwhile, the city’s leadership welcomed the prodigal store back with open arms.
“Three years ago, companies were leaving San Francisco,” San Francisco Mayor Daniel Lurie said in a statement. “Today, they want to be here, and Nordstrom Rack's decision to return to the heart of our city is another sign of the growing confidence in San Francisco. We’re making our streets safer and cleaner, bringing people back downtown, cutting red tape, and creating the conditions for businesses to succeed.”
Lurie added that he was “thrilled that Nordstrom is choosing to invest in San Francisco again” and that he was looking forward to “building on our city’s momentum."
Nordstrom Rack’s new San Francisco store is located at 2 Stockton Street in the former Forever 21 space, in a building owned and managed by Invesco Real Estate. Invesco also owns nearby 48 Stockton Street, which is the former location of a Barneys New York flagship.
San Francisco’s retail sector is still working its way back from a rough patch that accelerated after COVID-19 but began before the pandemic. Notable store closures include homegrown brand Gap, which shuttered two area stores in 2020, and Bloomingdale’s, which closed its San Francisco anchor last year.
However, a revitalization is underway. Japan-based retailer Uniqlo opened a flagship on Market Street on Oct. 9, and Mayor Lurie recently announced that Spain-based retailer Zara would be opening a 40,000-square-foot location in Union Square in 2027. Both companies previously closed their nearby locations, in 2021 and 2026, respectively. Slightly south of Union Square in San Francisco’s Design District, Canada-based DTC furniture brand Article is set to open one of its first two U.S. stores later in 2026.
