Zara to close its 26K sf storefront in San Francisco’s Union Square

Beleaguered Union Square in San Francisco has taken another blow, with Zara announcing it’ll pull up stakes.

The global fast-fashion giant based in Spain will close the doors to its 26,000-square-foot store at 250 Post Street when the lease expires in January, the San Francisco Chronicle reported.

Zara has occupied the three-story building since 2006. A spokesperson confirmed the retailer will not renew the lease in Union Square.

This week, the unidentified landlord began marketing the storefront for lease.

Ted Plant of Edward Plant, in charge of the listing, acknowledged the space is now on the market — but downplayed the notion that Zara would leave.

“We’re in negotiations and hoping to keep them,” Plant told the Chronicle. “It’s not our purpose to replace them.”

A Zara exit from Union Square signals another loss for Downtown San Francisco’s hard hit retail sector, including the luxury shopping district, because of diminished foot traffic, deteriorating street conditions and a shift in consumer buying habits.

More than 40 retailers have closed or announced closures of their Downtown San Francisco stores since early last year, according to the Chronicle.

In recent weeks, pending departures include Union Square’s 700,000-square-foot Macy’s, North Face, along with L’Occitane and Sephora from the Empire Centre San Francisco, formerly the Westfield San Francisco Centre mall.

The Chronicle, citing an unidentified source, initially reported that Zara would shutter its two-level, 27,600-square-foot store at the mall, whose lease ends in 2027. But a Zara spokesperson said it’s not slated to close.

Zara’s other San Francisco store is at the Stonestown Galleria at 3251 20th Avenue, across town.

Some still see hope for Union Square.

“Whether or not Zara departs, the 200 block of Post Street is cementing itself as one of the most significant blocks for luxury in San Francisco,” Alex Sagues of CBRE, now in talks with potential tenants at a listing for ground-floor retail at 240 Post Street, told the Chronicle.

“It’s got a very strong trajectory with Rolex, Patek Philippe and Breitling on the way.”

Amancio Ortega, founder of Zara, is worth an estimated $103 billion, according to Forbes. Through his investment firm Ponte Gadea, he controls numerous properties around Downtown San Francisco, including a 30,000-square-foot storefront at 26 Fourth Street, once home to the Container Store, according to the Chronicle.

— Dana Bartholomew

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