Nordstrom Returns to San Francisco with a Local Hub on Fillmore

Nordstrom left the City in 2023 when it closed its huge location in the Westfield mall. But now Nordstrom is making a comeback with a new Nordstrom Local hub in Pac Heights.

The Facts

After jumping the hurdles at the Planning Commission, Nordstrom will come back to San Francisco with a new concept called Nordstrom Local in Pac Heights. The store won't have any inventory, though — just online order pickups, returns, tailoring, and gift wrapping.

Nordstrom overcame the typical NIMBY opposition from a few neighbors, who almost succeeded at keeping the long-vacant storefront empty.

The Context

San Francisco requires any business with 11+ global locations to get special government permission to open in most neighborhoods. The law, first enacted in 2004, has made it difficult to fill storefronts and has slowed down the city’s economic recovery. According to a recent study by Maven Commercial, the average wait for approval is over seven months and costs applicants upwards of $25,000 in legal and consultant fees.

That's right - Nordstrom needed special government permission, accounting for hundreds of hours of City Hall staff time, and tens of thousands of dollars in legal fees, just to open a new store. This backwards law almost killed the project entirely, which would have kept the space empty.

This will be just the seventh Nordstrom Local in the country, and the first in San Francisco.

The GrowSF Take

It's time to get rid of the laws that keep storefronts vacant and make it harder for businesses to open in San Francisco. The Nordstrom Local saga is a perfect example of how our outdated formula retail laws are holding back our economy and keeping our commercial corridors lifeless.

In the February 2025 GrowSF Poll, 75% of respondents said they support eliminating or reforming the formula retail law. It's time our Supervisors acted on it.

If we want thriving neighborhoods, we need to let well-run businesses open without treating them like villains.