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Recent developments in the retail landscape have raised concerns about the future viability of San Francisco's once-thriving downtown area, with reports showing retail giants like Nordstrom closing their doors and Westfield ditching its iconic San Francisco mall, transferring control of it to the lender due to declining sales and foot traffic. At the same time, Westfield’s Valley Fair, a mere 50 miles away in Silicon Valley, saw record high sales last year with a growth trajectory that seems unstoppable. A closer look into the contrasting fortunes of these two shopping centers reveals the various factors at play.
According to the San Francisco Chronicle, Valley Fair managed a whopping 66% increase in sales compared to 2019 levels, while sales at Westfield's San Francisco mall dropped by 35% in the same period. Furthermore, anchor tenant Nordstrom is leaving the San Francisco location, while staying put in Valley Fair. This stark contrast raises questions about the reasons behind Valley Fair's successful performance despite the recent challenges faced by the retail industry.
One significant factor driving Valley Fair's growth is its massive $1.1 billion expansion, adding around 700,000 square feet of space, making the mall a million square feet larger than its San Francisco counterpart. Other factors contributing to its success include a strong roster of restaurants that attract visitors and, according to shoppers, a safe and clean environment. Valley Fair's food court, home to a wide variety of dining options, has become a food powerhouse, drawing more shoppers and invigorating the mall's overall atmosphere. This is in stark contrast to San Francisco mall's foot traffic that declined by 42% in 2022 compared to 2019 records, as reported in another Hoodline article.
While Valley Fair continues to foster a thriving retail environment by adding more dining options and innovative stores like Apple and Bloomingdale's, the San Francisco mall's fate is less certain, especially when coupled with concerns over public safety and cleanliness. Public records obtained by the San Francisco Chronicle reveal numerous instances of alleged stabbings, sexual assault, and robberies in the San Francisco mall, with Westfield previously criticizing the city for not adequately addressing the rampant crime.
As San Francisco's downtown area and nearby Mid-Market district continue to grapple with the aftermath of remote work, a decline in tourism, and safety issues, it's crucial to recognize the differences in the two Westfield mall's approach to growth. Valley Fair has successfully embraced “experiential retail” by focusing on non-shopping attractions like a bowling alley, escape games, and virtual reality gaming facilities, all aimed at drawing more visitors for activities that can't be replicated online. The mall's convenient location near major highways and affordable parking options further appeals to shoppers, in contrast to the less accessible Westfield San Francisco of the downtown area.
