Nordstrom Rack is opening a Union Square location, returning to an area it left in 2023, the company said Thursday.
The store will open at 2 Stockton St. in fall 2027. It will mark the company’s return to downtown, where it had two locations before shuttering both in 2023.
“The city has many wonderful assets, and it has clearly built momentum in making downtown a great place for customers,” Nordstrom CEO Erik Nordstrom said.
The retail giant is the latest in a string of companies that closed Union Square and downtown stores in the past five years and are returning as the area’s reputation improves. Nordstrom Rack previously had a location at 901 Market St., which is now occupied by Ross Dress for Less. A developer filed plans this year (opens in new tab) to convert the building to housing.
Uniqlo, which previously had a Powell Street location, reopened last week on Market Street. The RealReal and AT&T have returned to locations they abandoned during the pandemic, and Lids and Zara are moving into bigger stores. Zara is expected to open at 400 Post St. in early 2027.
“Three years ago, companies were leaving San Francisco. Today, they want to be here, and Nordstrom Rack’s decision to return to the heart of our city is another sign of the growing confidence in San Francisco,” Mayor Daniel Lurie said in a statement.
Brokers and stakeholders predicted that Uniqlo’s high-profile opening last week could create a follow-the-leader effect for other retailers hoping to return to the area, which draws downtown foot traffic and tourists.
In October 2025, Nordstrom opened a Nordstrom Local in the Fillmore neighborhood, which drew pushback from some neighbors as the company tested its San Francisco return.