Opinion | Bad laws and neighbors could derail a new Nordstrom in San Francisco


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Key Issue: Nordstrom Local Store Opposition in San Francisco

A new Nordstrom Local store proposal in San Francisco is encountering resistance from local residents. This highlights the city's stringent regulations on 'formula retail' (chain stores), which have made it challenging for larger brands to establish a presence.

The City's Approach to Retail

San Francisco's policies prioritize supporting local businesses, but this approach is questioned given the number of vacant storefronts and the resulting impact on economic activity. The city's restrictive laws are seen as a factor driving consumers to shop in suburban areas.

The Nordstrom Proposal

Nordstrom aims to open a 1,648-square-foot Nordstrom Local store, focusing on showrooms, tailoring, and online order pickup/returns. It's argued that this would benefit the city, offering a convenient service and representing a unique retail offering.

Arguments for Approval

Proponents suggest that approving the store aligns with the city's economic interests and provides a needed boost to local retail. The store would be a smaller-format location, unlike a traditional department store.

The Planning Commission's Role

The San Francisco Planning Commission will decide whether to grant the necessary 'conditional-use' authorization. The outcome will be a significant indicator of the city's future approach to retail development and its balance between local merchants and larger brands.

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Two years ago, when Nordstrom shuttered its once-gleaming flagship store in Westfield San Francisco Centre, the city convulsed with anxiety over the demise of local shopping and overall business vitality.

Given that continued state of existential angst, you’d think news of Nordstrom proposing a new store in San Francisco would be warmly greeted. But you’d be wrong — at least in the case of a group of residents loudly opposing the company’s desire to move into their neighborhood.

The kerfuffle is playing out at the San Francisco Planning Commission, where the Seattle retailer is requesting approval to put a concept store called Nordstrom Local into a long-vacant storefront on Fillmore Street. The commission on June 5 plans to consider Nordstrom’s request for “conditional-use” authorization. That Nordstrom needs permission at all to fill a retail space that’s been empty since before the pandemic is a perfect illustration of the city’s outdated and restrictive approach to “formula retail,” or what normal people call chain stores. 

Frustratingly, it’s yet another example of how San Francisco’s kvetchocracy all too often reigns over a commonsense approach to governing and doing business. 

For years, the city has made it increasingly difficult for brands owned by big corporations to set up shop in town, invoking the vaunted “San Francisco values” of promoting and protecting local merchants. But given the current reality on our streets and neighborhoods, with too many boarded-up storefronts and empty sidewalks, it’s time to walk back that tired approach. After all, it isn’t exactly consistent with San Francisco values to encourage locals to shop in the suburbs because the stores in their neighborhoods are shuttered. 

In the case of Nordstrom, approval of the new store should be a no-brainer. The 1,648-square-foot location would be a showroom, tailoring service, and pickup-and-return center for Nordstrom.com, rather than a full-blown shopping emporium. It’s a clever approach for Nordstrom, which knows that many consumers prefer shopping online, but like having a physical location for returns and alterations. It would be only the seventh Nordstrom Local location, the others being in Southern California and New York. In other words, the shop should be a feather in San Francisco’s retailing cap. 

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