Nordstrom Rack to Open Union Square Store in Fall 2027

The off-price retailer will return to downtown San Francisco at 2 Stockton Street as the local retail sector shows signs of recovery.

Updated on Oct. 15, 2026 in Openings & Closings

Nordstrom Rack to Open Union Square Store in Fall 2027

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Nordstrom Rack plans to return to the Union Square area with a new store opening at 2 Stockton Street in fall 2027. The retailer previously closed two downtown San Francisco locations in 2023.

Why it matters

The move marks a return to downtown for the off-price retailer, following a trend of companies reclaiming San Francisco storefronts as the area works to stabilize its retail footprint.

Nordstrom Rack is returning to the Union Square area following the closure of two downtown sites in 2023. The new location at 2 Stockton Street represents a significant shift as the retailer joins other brands re-establishing physical storefronts in the city.

The players

Nordstrom Rack

An off-price retail chain owned by Nordstrom, focused on discount clothing and accessories.

Uniqlo

A global apparel retailer that recently re-established a brick-and-mortar presence on Market Street.

Zara

An international fast-fashion retailer planning to open a new location at 400 Post Street.

The details

Nordstrom Rack will occupy the space at 2 Stockton Street after shuttering its previous downtown presence two years ago. The brand, which continues to operate a Nordstrom Local in the Fillmore neighborhood, is citing momentum in the area to justify the expansion. This follows a period where other retail spaces in the city, such as the former site at 901 Market St., have transitioned to non-retail or alternative uses like housing.

Timeline

  1. 2023: Nordstrom Rack closed two downtown San Francisco locations.

  2. October 2025: Nordstrom opened a Nordstrom Local in the Fillmore neighborhood.

  3. October 2026: Uniqlo reopened a store on Market Street.

  4. Early 2027: Zara is expected to open at 400 Post Street.

  5. Fall 2027: Nordstrom Rack will open at 2 Stockton Street.

Market Landscape

Nordstrom Rack's return follows a period of contraction for major retailers in the Union Square corridor. This move reflects a broader trend of brands re-evaluating city-center footprints following the 2023 downtown San Francisco retail closures.

Operators in the Union Square area should monitor the increasing occupancy rates as major brands like Zara and Nordstrom Rack signal a return to physical retail. Business owners should account for shifts in foot traffic patterns near 2 Stockton Street as the corridor prepares for these arrivals by fall 2027.

The takeaway

Retailers should track the resurgence of established brands in high-vacancy corridors as a signal of local commercial stability. Watch the fall 2027 opening at 2 Stockton Street as a benchmark for consumer interest in the revitalized downtown shopping district.

Further reading

For more on shifts in the city's retail density, browse our Openings & Closings section.

Live Poll

Do you feel your local downtown area is currently on a path to recovery?