Talk About Burying The Lead

In a May 10th article, SFGATE.COM reported the Australian clothing store Coco Republic is closing its flagship store in San Francisco. Nordstroms announced they will close their San Francisco store after almost 35 years this August. Uniqlo and H&M closed up during the pandemic shut-down, and never reopened. It is true San Franciscans are more acutely aware of crime than before the pandemic, and I'm sure that is a factor as to why these high-end retailers are closing. There is no denying the palpable feeling that San Franciscans are anxious, and for good reason. In a city with over 60 billionaires within its city limits, as well as over 60,000 housing units sitting empty (with an average rent of $3,300 a month for a one bedroom), it's no wonder locals are feeling a disconnect. It is not uncommon to see people so desperate that they brazenly shoplift with reckless abandon. But can we once again look past the headlines and find the buried leads a few paragraphs down? According to SF Travel, the city's Convention and Visitor's office, there are a variety of reasons why fewer people are walking the streets of Downtown and Union Square. As of May 11th, the pandemic was declared officially over, at least in terms of Covid-era restrictions. Yet travel is down 25% this time, compared to the same time in 2019. Travel is down from Asia, and the major conventions are only registering attendees in the thousands, instead of the tens-of-thousands. Let us not forget that the tech workers, who arrived in the San Francisco Bay Area by the tens-of-thousands over a decade are either working from home, working a reduced office schedule, or have been simply fired. Once they were laid off, some chose to move out of the city for better opportunities.

181 Fremont St. Meta's former San Francisco Headquarters Let us also not forget that major players like Facebook (Meta) just shuttered their 500,00 square foot San Francisco headquarters. Salesforce, Twitter, etc. have also laid off tens of thousands of high-income earning tech workers, taking with them their disposable income and high-end retail foot traffic. Therefore, tens of thousands of tech-workers missing from San Francisco streets is also a factor as to why the high-end retailers are closing. Lastly, did we not forget a little thing called the internet? Even before the pandemic shuttered brick-and-mortar storefront doors, the internet was already ahead of the curve with driving consumers away from the outdoors, to their laptops. It's easier to scroll through the Overstock.com website in your underwear on the couch, than it is to put some pants on and go shopping. This was a trend long before the pandemic, and one that retailers were acutely aware of for a decade, but super-charged by the pandemic. It is a simple formula: Missing convention-goers + online shopping + missing tourism from Asia + tens-of-thousands missing laid-off/furloughed tech workers = less foot traffic. Perhaps this factor will be included in the greater conversation as to the reasons big chains are closing their doors in Union Square.