Business & Tech
Westfield Gives Up Union Square Mall
Citing a significant decreases in sales and foot traffic, major mall management company will give up Westfield San Francisco
SAN FRANCISCO — Westfield announced this week that it will give up its namesake mall in the heart of San Francisco, citing significant decreases in sales and foot traffic.
Westfield San Francisco Centre, which at 1.2 million square feet is the largest shopping center in the city, is the latest of over two dozen retailers who have pulled out of the downtown area since 2020.
In a press release, the company cites significant decreases in sales and foot traffic. Sales dropped by 66% from 2019 to 2022 at Westfield San Francisco Centre in a period that saw a 23% increase at other Westfield flagship stores in the United States. Foot traffic at the mall dropped from 9.7 million visits in 2019 to 5.6 million in 2022 and business occupancy has fallen to just 55%.
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"For more than 20 years, Westfield has proudly and successfully operated San Francisco Centre, investing significantly over that time in the vitality of the property," said Molly Morse, a spokesperson for Westfield. "Given the challenging operating conditions in downtown San Francisco, which have led to declines in sales, occupancy and foot traffic, we have made the difficult decision to begin the process to transfer management of the shopping center to our lender to allow them to appoint a receiver to operate the property going forward."
The announcement comes a month after Nordstrom, which has occupied a five-story space in the mall for over three decades, announced it will not renew its lease and will close at the end of August.
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"It is disappointing, but not surprising, that Westfield walked away from San Francisco," San Francisco Supervisor Ahsha Safai said Tuesday. "Last year, I met with their leadership and security team from Westfield along with the San Francisco Police Department command staff. We heard firsthand the challenges they were facing, and it is clear we need a change in the conditions on our streets so shoppers and employees feel safe in our downtown."
Westfield took over the shopping center located at Fifth and Market streets in 2002.
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