San Francisco’s retail landscape takes a hit as Old Navy and other major stores shut their doors.
Old Navy, a well-established retailer in San Francisco for the past 30 years, is the latest casualty in the city’s growing list of store closures.
The Market Street location, situated just three miles away from Old Navy’s corporate headquarters, is set to shut down on July 1 when its lease expires, according to a statement from parent company Gap Inc., which also owns posh brands like Gap, Banana Republic, and Athleta.
In explaining the closure, Gap Inc. stated, “Old Navy is always evaluating its real estate portfolio to ensure a healthy fleet of stores that can provide the best possible experience for our customers.”
The company acknowledged that, “the way we leverage flagship locations has changed,” leading to the decision to close the Market Street store.
Gap Inc. is actively seeking a new downtown location in San Francisco to replace the soon-to-be-vacant storefront.
This announcement comes shortly after Gap Inc. revealed its plan to cut 1,800 jobs nationwide as part of a cost-cutting reorganization. The job reductions were implemented in response to declining sales and profits, following an earlier elimination of over 500 corporate positions.
Unfortunately, Old Navy is not the only long-standing retailer in the Bay Area facing significant losses and subsequent closures. Nordstrom, another renowned brand, is preparing to shut down two of its locations in the city—the department store in the Westfield Mall and the Nordstrom Rack on Market Street.
These rapid closures will result in the loss of nearly 380 jobs.
Nordstrom’s decision is attributed to the challenges posed by increased shoplifting incidents and a decline in foot traffic.