A number of businesses have shuttered in a U.S. city in a so-called “bad luck loop” – but many more are bucking the trend.
There have been a number of high-profile closures in San Francisco in recent months.
Concerns about crime, rising rent prices and rising costs of living have led to a number of businesses pulling the plug. Insiders reported.
Most recently, the doors closed at Nordstrom’s five-story San Francisco Center location for the final time after 35 years of operation.
Previously, other household names such as Whole Foods, Amazon Go and Office Depot closed their stores.
San Francisco has suffered a major setback due to a sharp decline in sales. The San Francisco Center, once a bustling retail hub, saw total sales increase from $455 million in 2019 to $298 million in 2022.
Additionally, foot traffic has plummeted – from just under 10 million visits in 2019 to just 5.6 million in 2022.
However, other businesses are defying the California city’s “unhappiness spiral” by staying put, and many more companies are moving into the city to begin operations.
The Swedish furniture chain Ikea opened in August in an area of 52,000 square meters.
“As a new neighbor in the community, we are working to contribute and create a comfortable and welcoming environment,” an Ikea US spokesperson told Insider, adding that Ikea has had stores in the Bay Area since 2000.
They continued, “We are excited to strengthen our presence in San Francisco and intend to test and try different formats to meet the needs of our San Francisco consumers for many years to come.”
Luxury fashion outlets like Chanel and Yves Saint Laurent have decided not to leave the city.
The former relocated from a smaller location in the city after purchasing a three-story building for $63 million.
And jewelry brand Van Cleef & Arpels opened its first standalone location in Union Square in 2022.
A total of more than 39 retail stores have closed in the Union Square area of San Francisco since 2020, according to Coresight, a market research firm.
Not only is California affected by the retail apocalypse, large parts of the country are also suffering from the apocalyptic economic impact, including Louisiana, where CVS also announced closures.