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IKEA’s Downtown San Francisco Store Grand Opening Signals Shift in Retail Landscape

The international furniture giant IKEA will resist a recent onslaught of shop closures by opening a location in downtown San Francisco later this month, the company announced on Tuesday.

The store, which will be the flagship of a new mall owned by Ingka Centres, an IKEA-affiliated developer looking to direct shoppers towards company stores, will be situated a few blocks from the city’s Union Square retail core.

IKEA claimed the new, enormous three-story store will be 52,000 square feet overall and have 27 exhibits of completely furnished rooms made specifically for city living.

The news buckes a general trend of stores leaving San Francisco’s financial district.

A flurry of retail store closings in San Francisco in recent months serves as a compilation of popular retail names, including Whole Foods, Old Navy, and Nordstrom.

The future of the complex is unknown when the 70-store downtown Westfield Mall announced in June that it will stop making loan payments on a $558 million debt, giving up ownership of the mall.

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Downtown San Francisco’s Changing Retail Scene

ikea-downtown-san-francisco-store-grand-opening-signals-shift-in-retail-landscape
The international furniture giant IKEA will resist a recent onslaught of shop closures by opening a location in downtown San Francisco later this month, the company announced on Tuesday.

The San Francisco Standard reported in May that nearly half of the establishments in the city’s downtown shopping centre had shuttered since 2019.

The string of store closings has drawn criticism that focuses on homelessness and crime, but experts and a former downtown store owner previously told ABC News that a more complex set of forces was pushing businesses out of the city.

They also noted that certain establishments were experiencing slow sales as a result of a long-standing trend away from brick-and-mortar retail that intensified during the pandemic.

They claim that the increase in remote work, a tendency that is even more pronounced in the Bay Area’s tech industry, has resulted in a decline in the number of people who commute to work downtown.

According to the corporation, there are currently two IKEA locations in the San Francisco area. Stores in East Palo Alto and adjacent Emeryville, California, respectively, started operating in 2000 and 2003, respectively.

On August 23, the upcoming store in San Francisco’s financial district will debut.

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Source: MSN

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