Westfield mall blamed SF Nordstrom closure on “inhibiting” crime

Nordstrom said the downtown “dramatically changed over the past several years, affecting customer traffic to our stores and our ability to operate successfully,” without specifically citing public safety concerns in an employee memo.
Unibail-Rodamco-Westfield, which owns the Westfield mall where Nordstrom is closing, was more forthright, with a spokesperson blaming the city for “unsafe conditions” and a “lack of enforcement against widespread criminal activity.”
These claims are backed up by crime data showing that retail theft has increased in San Francisco in recent years. But some measures of criminal activity such as 911 calls at Market and Fifth streets are lower than pre-pandemic levels, suggesting there is less foot traffic and shopper activity, which in turn could lead to a perception of increased danger.
Statewide data show that San Francisco has a high rate of shoplifting reports compared to the rest of California and nearby Bay Area counties.
According to the FBI̵[ads1]7;s Uniform Crime Reporting data, the city saw 304 shoplifting reports per 100,000 residents in 2021, up 14.7% from 2019’s 265 reports per 100,000 residents and nearly double the 160,000 residents in 2020.
In contrast, California’s rate in 2021, the most recent data available, was 163 per 100,000 residents, which is still below 2019’s level of 228 reports per 100,000 residents and was flat compared to 2020.
Reports of shoplifting dropped across the state in 2020 as many retailers and malls were closed for in-person shopping under pandemic health orders.

Pedestrians walk on San Francisco’s Market Street past Nordstrom Rack which has announced it will close.
Lea Suzuki/Associated PressAcross the bay, Alameda County saw its shoplifting reporting rate rise to 222 per 100,000 residents in 2021 from 162 in 2020, but remains below the 2021 level of 228. To the south, Santa Clara County had 115 reports per 1,000,000 residents, compared to 2000 200 inhabitants. below 2019’s rate of 155.
“San Francisco stands out compared to the rest of the state,” said Magnus Lofstrom, criminal justice policy director and senior fellow at the Public Policy Institute of California, a nonpartisan think tank, which provided the data.
While property crime is relatively high in San Francisco, violent crime is relatively low compared to other major US cities, data from local police districts show.
Annual homicides have increased in San Francisco during the pandemic, but that matches an upward trend statewide and nationally, Lofstrom said.
Shoplifting data comes with caveats.
San Francisco is a center for tourism and — more so before the pandemic — a destination for office commuters who live outside the city, adding to its daytime population. That means there are more potential victims and perpetrators of crimes unaccounted for in the city’s overall population, which increases the crime rate compared to cities that don’t see as many visitors, Lofstrom said.
San Francisco police have also said that shoplifting is underreported. “There is incomplete data. Many incidents are not reported to the police, Lofstrom said.
It’s not clear how much of a factor public safety was in Nordstrom’s decision to close. Another major retailer, Whole Foods, cited safety concerns when it temporarily closed its largest San Francisco store, located at Eighth and Market streets, last month.

Saks Off 5th on Market Street in San Francisco is among a collection of businesses that have announced they will close.
Gabrielle Lurie/The ChronicleAnother measure of crime is the number of 911 calls at a particular city intersection.
At Fifth and Market streets — adjacent to Nordstrom, Nordstrom Rack and Saks Off 5th — annual 911 calls plunged from 3,951 in 2019 to 1,163 in 2020 and have continued to decline with 913 in 2021 and 897 in 2022. That means not necessarily so. the area is safer, but is likely linked to a lower volume of foot traffic following pandemic health restrictions, fewer tourists and telecommuting.
Theft reports of theft, which includes shoplifting, have increased in the Tenderloin Police Station district, which includes Westfield Mall, but remain below pre-pandemic levels in 2019.
In the first four months of 2023, these reports increased by 22% to 567 incidents from 465 incidents in the same four months in 2022. Reports increased in all of 2022 to 1,800 incidents, up 43% from 1,251 incidents in 2021 and 1,0208 in 2020 But in 2019 there were more reports: 2,535.
When it comes to reducing retail crime, there is no obvious solution, Lofstrom said. Part of the challenge is that there is no clear data on what percentage of theft is carried out by organized criminals or those who want to profit from the goods, as opposed to people in need who steal food or other necessities as a means of survival.
“It’s hard to say exactly what can be done about this,” he said. “Research strongly points to a higher number of police deterring theft.”
In March, the Board of Supervisors approved $25 million to fund additional police overtime. Supervisor Matt Dorsey, who represents the South of Market and Westfield mall area, is working on a potential ballot measure that would increase police staffing.
“It’s been a challenge with recruitment and retention,” Lofstrom said of policing. “It’s something we see around California and something that also applies to San Francisco.”
On Wednesday, merchants around nearby Union Square tried to highlight signs of economic progress for the area, which included a packed free tulip show in March, more tourists and some new store openings.
“We are as committed as ever to brick and mortar in the District,” Lauren Ellis, director and partner at CK Contemporary, an art gallery celebrating its 10th anniversary, said in a statement. “We are excited about the momentum that has built in the neighborhood as we navigate out of the past challenging years.”
Midday on a rainy Wednesday, it was quiet outside the Market Street entrance to Westfield shopping centre. A security guard stood inside the door and looked out.
– I was surprised by the lack of people. I thought it would be a lot busier,” said Colin Burns, a visitor from Wellington, New Zealand, who was exiting the mall.
Arum Kathuria of San Francisco was not surprised to hear that Nordstrom would close and expected other retailers to follow suit. “Shoplifting and store security is the biggest reason behind it,” he guessed. “I’ve seen shoplifting, a lot.”
Natasha Burr of San Francisco came downtown to check after she heard Nordstrom was closing. But she won’t miss it.
“I think malls are a terrible idea,” she said on the way in. “I’m interested in them taking the mall and turning it into residential and mixed-use.”
Mayor London Breed and Supervisor President Aaron Peskin have proposed making it easier to open office, entertainment and other uses to vacant retail space. The planning committee will vote on the measure on Thursday.
One couple who didn’t seem fazed by reports of crime in the mall or on the streets were Maria Magana and Gabriel Teele, who drove in from Richmond.
“I feel like it’s worse in Richmond than it is here,” Magana said. “Public safety is a big issue, but it’s not that big of an issue for us. We’re used to it,” Teele said.
Reach Roland Li: roland.li@sfchronicle.com; Twitter: @rolandlisf,Reach Sam Whiting: swhhiting@sfchronicle.com