Westfield plans to pull out of downtown San Francisco, the company confirmed Monday citing significant decreases in sales, foot traffic and occupancy level.
The move comes after Nordstrom announced last month it would close both of its stores in downtown San Francisco. Other retailers leaving San Francisco include Whole Foods and Safeway, who announced shutting down operations in the area as the city struggles to refill empty offices downtown and in the Financial District.
"For more than 20 years, Westfield has proudly and successfully operated San Francisco Centre, investing significantly over that time in the vitality of the property," Westfield said in a statement. "Given the challenging operating conditions in downtown San Francisco, which have led to declines in sales, occupancy and foot traffic, we have made the difficult decision to begin the process to transfer management of the shopping center to our lender to allow them to appoint a receiver to operate the property going forward. San Francisco Centre’s debt is non-recourse and this action has no impact on the rest of URW’s debt."
Mayor London Breed released the following statement about Westfield on Monday:
"This has been something that has been coming for some time. We’ve had numerous conversations with Westfield about the future of this site, and it’s been clear that they did not have a long-term commitment to San Francisco as they look to withdraw entirely from the United States market. With new management, we will have an opportunity to pursue a new vision for this space that focuses on what the future of Downtown San Francisco can be. Whether that’s attracting new types of business or educational institutions, or creating a totally different experience, we need to be open to what’s possible. Retail is changing, and we will adapt to diversify and better use spaces in our Downtown area. This is at the heart of what we are trying to create in San Francisco as we move forward.
For now, the stores at the mall remain open under the new management. The public safety resources we’ve dedicated to the area, including ambassadors and police officers, remain in place. The stores are still a part of our Downtown experience and we will continue to support this area to make it clean, safe, and inviting for everyone."
Supervisor Matt Dorsey says the city needs to address the bigger problem first.
“There’s also factors that we can control and they include things like street conditions, homelessness and public drug use and public drug dealing and there's things that San Francisco has to do a better job of addressing and I think the only way we are going to be able to do that is with a fully staffed police department,” he said.
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Those who have been tracking the problems downtown say other factors playing a role are the area’s reputation, cleanliness and the lack of international travelers.
“The small businesses around the centers are not thriving anymore they are not opening in some cases, so I think there has to be a real creative look at how we look the city’s space and for whose benefit, it cannot go back to the same,” said Professor Colin Johnson of San Francisco State University School of Business.
Supervisor Dorsey said he is working on a charter amendment for the March 2024 ballot that would secure a fully staffed police department within five years.
