The exodus of big-name retailers from downtown San Francisco continues as fashion brand Michael Kors closes up shop — dealing another blow to the city’s economy.
The company announced the impending closure of its store at the San Francisco Centre mall last week.
Signs displayed at the store’s entrance informed customers of the upcoming shutdown and directed them to the nearest Michael Kors location in Santa Clara, approximately 45 miles away, according to SFGATE.
“It’s not goodbye,” read the signs taped to the glass doors of the Michael Kors store on the ground level.
“We’ve loved sharing the best with you at Michael Kors San Francisco.”
This closure is part of a broader trend affecting the San Francisco Centre mall, the 1.5-million-square-foot shopping center which has experienced a series of high-profile retail departures over the past year.
Notably, the Adidas store, situated just a few doors down from Michael Kors, closed its doors in January 2024.
Other large-scale retailers that have left the mall include Nordstrom, American Eagle, J. Crew, Hollister, Madewell, Lucky Brand and the LEGO Store.
San Francisco Centre, once valued at $1.2 billion in 2016, saw its worth plummet to $290 million last year following loan defaults and major tenant departures like Nordstrom.
Owners Brookfield and Unibail-Rodamco-Westfield stopped making payments on $558 million in commercial mortgage-backed securities loans, leading lenders to seek a court-appointed receiver.
Now under receivership, the property is being managed by Trident Pacific Real Estate Group, which is responsible for operations, leasing and rent collection.
These departures have contributed to a rising vacancy rate within the mall, reflecting the challenges faced by retailers in the area.
As of January last year, the San Francisco Centre mall reported a vacancy rate exceeding 50%.
The ripple effect extends beyond the confines of the San Francisco Centre.
The Union Square shopping district, a historically vibrant retail hub, has also been impacted.
In March 2024, Macy’s announced plans to close its Union Square flagship store, a move that would significantly increase the area’s vacancy rate from 22% to an estimated 34.5%.
Concurrently, Walgreens has revealed plans to shutter 12 of its San Francisco locations by late February 2025, citing increased regulatory and financial pressures that hinder the company’s ability to cover operational costs.
The move is part of Walgreens CEO Tim Wentworth’s larger strategy to close 1,200 stores nationwide over three years as part of a $1 billion cost-cutting program.
San Francisco’s struggles with rising commercial vacancies have coincided with a rise in public safety concerns, including theft and homelessness, which have further deterred both consumers and businesses and contributed to the city’s economic instability.
The city was also dealt a blow by the tech industry’s shift to remote work, which has reduced office occupancy, weakening the city’s financial core and impacting local businesses reliant on commuter traffic.
The Post has sought comment from Michael Kors and San Francisco Centre mall.
