Nordstrom Rack is coming back to downtown San Francisco. Nordstrom said on Thursday, Oct. 15, that it will open a 51,500-square-foot Rack store at 2 Stockton St., at the corner of Stockton and Market streets near Union Square, in fall 2027.

No exact opening date has been announced.

Three years after Nordstrom left

Nordstrom was the anchor tenant at the San Francisco Centre mall on Market Street and also ran a Nordstrom Rack at Fifth and Market. Both closed in 2023, ABC7 reported.

Since then, the company's only city location has been the Nordstrom Local on Fillmore Street in Pacific Heights, which opened in October 2025 and handles online pickups, returns, alterations and styling appointments rather than racks of inventory.

The building

The four-story building at 2 Stockton is owned and managed by Invesco Real Estate, according to Nordstrom. It is the former Forever 21 space, which closed in 2019 and was briefly home to candy shop IT'SUGAR before sitting empty, SFist reported.

Neighbors at the intersection include Uniqlo's reopened flagship, Ross and Levi's, with Trader Joe's nearby on Fourth Street. Citing the Chronicle, SFist said the building is also slated for a roughly $60 million renovation, with a permit issued for a three-story office addition and new Market and Stockton facades.

What they said

"Nordstrom has a long history in San Francisco, and we're excited to bring Nordstrom Rack back downtown," co-CEO Erik Nordstrom said in the company's announcement.

"Three years ago, companies were leaving San Francisco. Today, they want to be here," Mayor Daniel Lurie said.

The Rack sells discounted clothing, shoes, beauty and home goods, and the new store will offer online order pickup and returns for both Nordstrom.com and NordstromRack.com, the company said.

Downtown's mixed picture

The empty San Francisco Centre space on Market Street and the former Barneys on Stockton and Powell are still vacant, SFist noted, and Macy's is exploring future uses for its Union Square property.

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