A business opening is always cause for celebratory Instagram post (opens in new tab). But this one is apparently deserving of a seven-hour block party (opens in new tab).
When Uniqlo opens Friday at 801 Market St., the retailer will mark the occasion with DJs, art displays, and a lineup of local experiences that would make any city dweller jealous. There will be stages. There will be soccer pitches and award-winning croissants and bag-charm-designing stations. It’s Outside Lands for outerwear.
The extravagance has a point. Uniqlo’s pandemic-era departure from Powell Street was a marker of downtown’s decline, and its return is the latest in a series of indicators that the worst of times may be behind us and a wider homecoming is on its way.
Retailers, like pack animals, need to settle in groups to stay comfortable. The hollowed-out retail corridors on Market Street, Powell, Stockton, and the rest of Union Square could use the boost.
“When a global brand chooses to reinvest here in the city, others take notice,” said Jeremy Blatteis of Blatteis Realty, who represents several spaces downtown. When Old Navy left 801 Market St. in 2023, adding to the years-long drumbeat of closures, it “really, really stung,” he said. Uniqlo’s activation is a welcome salve.
“The conversations we’re having with retailers and landlords feel different these days,” he said.
With major brands once again embracing downtown, other big retailers will likely follow, experts say. | Source: Morgan Ellis/The Standard
In a happy coincidence, another retail tenant is preparing to take over Uniqlo’s former home on Powell Street: Los Angeles Apparel, which last week confirmed its move to Union Square.
Brand representatives often ask brokers what deals have been signed recently and who’s coming in where. Having a buzzy opening to flaunt makes a difference, Blatteis said. He’s had national and global brands mention Uniqlo’s impending opening and has brought it up himself in meetings with potential tenants. “Throwing out a big name like that opens doors to bringing other stores back. It helps the other spaces around it.”
Once a store like Uniqlo jumps in, it “ignites other retailers to follow,” said Maven partner Pamela Mendelsohn. “So many brands that have been standing on the sidelines are now asking for updates.”
Case in point: She is working on a marketing package for a contact that — after years of hesitation — finally decided that it was time to seriously consider diving into the market again. “We’re all touring so much, so often now.”
Boomerang boom
Brokers say San Francisco is catching up to other cities that had a head start on the post-pandemic retail revival. Julie Taylor, the executive vice president at Colliers who secured the Los Angeles Apparel lease, said she’s been seeing brands sign leases for large footprints in Chicago and other major cities.
“We’re following the trend. San Francisco is going to end up with a whole smorgasbord of new options,” Taylor said. “We’re filling our spaces.”
Sometimes it takes a push from the city government. After reading about the 50 best retailers in America, Mayor Daniel Lurie sent a letter to each one asking if they would consider a San Francisco outpost. When a broker is “trying to land a whale,” city officials will often sit down with them to convince them to commit, according to Anne Taupier, executive director of the Office of Economic and Workforce Development.
Uniqlo is settling into the former home of Old Navy. Vacancies on Market Street remain a source of concern for the city’s boosters. | Source: San Francisco Chronicle via Gett
“I’ve had meetings where the mayor and Ned [Segal, chief of housing and economic development] and the district attorney and the police chief are sitting around a table, talking to a retailer and their broker about how committed we are to making this a really a place where they can be successful,” Taupier said.
When the leasing process ends, the Office of Economic and Workforce Development’s support remains: In September, it sent out a recruiting email on behalf of Uniqlo, advertising $21.50 hourly starting pay, 401(k) match, and paid time off.
Uniqlo’s impact on other retail openings will depend on how successfully it can attract foot traffic and sales, which isn’t a given. Ikea’s food hall one block away on Market Street has struggled to get people in the door, causing it to bleed restaurateurs. While the area is starting to fill back up with merchants, they’ll remain there only if the economics work out.
“The proof will be in the sales,” said Laci Ravina, a broker with Colliers who specializes in Union Square. Early signs are encouraging, she added. “All the retailers we speak with are reporting positive sales comps.”
Public opinion seems to be aligning with the openings: A citywide survey released last week by the controller’s office showed that nearly 60% of respondents reported going downtown to shop, versus around 44% in 2023. Dining and nightlife showed a similar jump, which Taupier attributes to downtown events and activations like First Thursdays.
“All of that is on a really, really positive trajectory,” Taupier said.
In addition to Uniqlo, the area has had a slew of boomerang tenants that left during the pandemic only to return. Resale shop The Real Real and AT&T both reopened in the locations where they’d previously shuttered. Mall brand Lids has found a new spot in Union Square, and Mi Cocina, a denim kitchen goods retailer that had also been in the San Francisco Centre mall, moved down Market Street and opened a cafe. Others are circling: Luggage store Tumi and fashion brand Aritzia could be returning soon, sources say.
Still, the empty mall remains an albatross as developers try to reimagine what it could become. And signed leases don’t automatically convert to open stores: A planned Zara flagship at 400 Post is targeting an opening early next year, though it previously hoped to be open for the holiday season.
Meanwhile, the area is primed for another dose of lease signings: The Downtown Development Corporation is expected to announce a slate of grant recipients in the coming weeks, focusing on Union Square but potentially expanded into the Mid-Market area. Its Downtown Business Funds will dole out tens of millions to merchants willing to fill vacant storefronts.
Stakeholders hope Uniqlo’s reopening will help fill empty storefronts around Union Square. | Source: Paul Kuroda for The Standard
Down the street from Uniqlo, a smaller retailer opened one week before. On his first day with Mi Cocina’s doors open, Ulrich Conrad Simpson stirred cafe de leche and pointed out his line based on the work of the late Ruth Asawa.
He designed his peaceful Market Space cafe bar to be a respite from the chaotic street, complete with an interactive human-size screen that shoppers can use to preview how products look on them. The basement serves as an order fulfillment center and workshop.
He is unperturbed that large retailers are once again going to be his close neighbors.
“They’ve got nothing on me,” he said. “We’re curating a vibe. It costs them too much money.”