June 16, 2023 | 18:38
The wireless carrier said Friday it would close its flagship store in downtown San Francisco, compounding real estate pain in the once-thriving tech hub that has been hit particularly hard by the pandemic.
Stores in San Francisco have closed their doors as they try to cut back on real estate in the face of declining footfall, occupancy and sales.
Office buildings are empty as more people work from home, boosted by large layoffs from major tech companies.
AT&T said its Powell Street store would close Aug. 1[ads1] and that all retail employees affected by this change would be offered jobs at one of its other locations in the city.
“Consumer shopping habits continue to change and we change with them. That means serving customers where they are through the right mix of stores, digital channels and our phone-based care team,” said a company spokesperson.
Earlier this week, Unibail-Rodamco-Westfield said it would transfer the Westfield San Francisco mall to lenders.
Last month, Nordstrom said it was giving up its downtown store in the mall.
Real estate investment trust Park Hotels & Resorts also said last week it stopped making payments on a $725 million mortgage related to the Hilton San Francisco Union Square and Parc 55 hotels.
In April, AT&T had reported dismal cash flow and missed market estimates for first-quarter revenue, underscoring the strain from strained consumer wallets.