Nordstrom Rack in San Francisco is scheduled for a fall 2027 return, with a larger store planned at 2 Stockton Street in Union Square. Nordstrom’s October 15 announcement identifies the location and services. The move follows the company’s 2023 downtown closures as the district continues to contend with retail vacancies.
Key Takeaways
- Nordstrom announced a 51,500-square-foot store at 2 Stockton Street on October 15, 2026, with an opening targeted for fall 2027.
- The planned location would be approximately 6,000 square feet larger than its former store at 901 Market Street.
- The new store is expected to offer online order pickup from Nordstrom.com and NordstromRack.com, along with returns.
- Union Square and Post Street recorded a 20.3% retail vacancy rate in the second quarter of 2026, according to Cushman & Wakefield.
Nordstrom Rack in San Francisco is planning a downtown return with a 51,500-square-foot store at 2 Stockton Street near Union Square. The retailer expects to open in fall 2027. Its October 15, 2026, announcement follows the company’s downtown store closures in 2023.
The announcement identifies a downtown address and an anticipated opening season, but no exact date. It comes as Union Square records new store openings alongside persistent retail vacancies.
Nordstrom Rack in San Francisco Plans a Larger Store at 2 Stockton Street
Nordstrom said the new store will occupy 51,500 square feet in a property owned and managed by Invesco Real Estate. The four-story building stands near Market Street and previously housed Forever 21, which left in 2019. A candy retailer later used the space temporarily, according to local reporting. The new lease does not mean the discount chain is returning to its old address.
A 2013 company announcement described Nordstrom Rack’s former 901 Market Street store as 45,496 square feet. The proposed Stockton Street store would be about 6,000 square feet larger. Nordstrom has not released an interior layout or indicated which floors would contain sales areas.
“Nordstrom has a long history in San Francisco, and we’re excited to bring Nordstrom Rack back downtown,” co-CEO Erik Nordstrom said. The company has not identified an opening day or location-specific staffing estimate.
Nordstrom Rack sells clothing, shoes, accessories, beauty merchandise and home decor at discounted prices. The chain advertises savings of up to 70% on some merchandise, not every purchase. Nordstrom has not released a Union Square-specific brand list.
The announcement confirms that shoppers will be able to collect online purchases from Nordstrom.com and NordstromRack.com at the new location and make returns there. Alterations are available at selected Nordstrom Rack stores, but the company has not confirmed that service for Stockton Street. Opening hours, parking arrangements and any launch events also remain unannounced.
The Stockton Street address is within walking distance of Powell Street station, which serves BART and Muni Metro. That gives shoppers a nearby transit connection, although Nordstrom has not released transportation guidance for the new store. Its location also places the planned outlet close to other downtown shopping destinations.
Public records cited by the San Francisco Chronicle show a permit for a three-story office addition and changes to the building’s street-facing facades, with reported work valued at $60 million. Those plans do not establish the Rack store’s eventual layout or construction timetable.
The 2023 Closures Explain Why This San Francisco Return Matters
Nordstrom’s downtown departure in 2023 included its department store at the former Westfield San Francisco Centre and the Nordstrom Rack at 901 Market Street. The two closures removed a full-line department store and an off-price clothing outlet from central San Francisco. The company had operated in the downtown retail market for decades before those locations finally shut.
The former Rack address now houses Ross Dress for Less. Meanwhile, property owner Hudson Pacific Properties has filed plans to convert the upper floors of 901 Market Street into 136 apartments while retaining ground-floor retail, according to the Chronicle. The filing is a proposal and does not establish that the housing conversion has been completed.
San Francisco Centre, the mall that housed Nordstrom’s department store, shut in January 2026 after years of tenant departures. The closure of San Francisco Centre left a major downtown property without its former stores, and the complex’s future use remains unresolved.
Nordstrom did reestablish a smaller presence in the city before announcing the latest Rack store. In October 2025, it opened Nordstrom Local Fillmore at 1919 Fillmore Street. That location is a service hub for online order pickup, returns and alterations, rather than a department store stocked with a full range of merchandise.
Unlike Nordstrom Local, the planned Union Square Rack would stock merchandise for in-person shopping while also handling digital orders. Nordstrom has not disclosed projected sales, customer traffic or location-specific hiring, leaving the announced floor space as the clearest measure of the project.
New Union Square Openings Arrive Alongside Persistent Vacancies
Several retailers have recently opened or announced stores in and around Union Square. Uniqlo reopened on Market Street in October 2026, while The RealReal and AT&T have returned to the district. Zara is preparing a larger store at 400 Post Street, although the announced opening remains separate from Nordstrom Rack’s fall 2027 timetable.
Tourism also shapes demand around Union Square. The San Francisco Travel Association projects 25 million visitors and $10.6 billion in citywide spending in 2027. The San Francisco tourism forecast does not estimate spending at Nordstrom Rack or neighboring stores.
The movement does not erase the district’s remaining empty retail space. Cushman & Wakefield reported a 20.3% overall retail vacancy rate for Union Square and Post Street during the second quarter of 2026, compared with 20.0% in the preceding quarter and 20.9% a year earlier. The figures describe a defined shopping submarket, not San Francisco’s citywide retail vacancy rate.
The brokerage attributed the quarterly vacancy increase partly to the former Saks Fifth Avenue space returning to the market. It also recorded 42,900 square feet of net retail absorption in the first half of 2026. Both figures describe a mixed market.
Macy’s Union Square department store remains open, although its long-term property arrangements are still under discussion, according to the Chronicle. Nearby, the shuttered San Francisco Centre illustrates the scale of some remaining vacancies. Nordstrom’s new location would fill one prominent building, but it would not by itself determine the future of other large downtown retail sites.
Frequently Asked Questions
When will Nordstrom Rack open in San Francisco?
Nordstrom Rack in San Francisco is scheduled to open in fall 2027. The company has not announced a specific opening date or operating hours.
Where will the new Nordstrom Rack store be located?
The new store is planned for 2 Stockton Street in San Francisco’s Union Square neighborhood. The address is near Market Street and within walking distance of Powell Street station.
Will the new store be larger than the former Market Street location?
Yes, the planned location measures 51,500 square feet, compared with the former store’s reported 45,496 square feet. The difference is approximately 6,000 square feet.
Will the new Nordstrom Rack offer online order pickup and returns?
Nordstrom has confirmed plans for pickup of purchases made through Nordstrom.com and NordstromRack.com, along with in-store returns. The company has not confirmed whether the Union Square location will provide alterations.
