Three years after closing all of its San Francisco stores, Nordstrom Rack will be returning to Union Square in the fall of 2027, joining a growing roster of retailers opening new locations or expanding their presence in downtown SF.Nordstrom has announced plans to open a 51,500-square-foot Nordstrom Rack at 2 Stockton Street in fall 2027, bringing the discount fashion retailer back to downtown San Francisco after its departure in 2023.The four-story building sits at the intersection of Stockton and Market streets, where Uniqlo recently reopened its flagship store. Ross and Levi’s are also located at the intersection, with Trader Joe’s nearby on Fourth Street.The Chronicle reports that other retailers have also returned to Union Square, including The RealReal and ATT. Zara is planning to replace its longtime store at 250 Post Street with a larger flagship at 400 Post Street. Nintendo and Pop Mart have also opened nearby, and luxury brands including Bulgari, Patek Philippe, and Breitling have reportedly invested in new boutiques.“Three years ago, companies were leaving San Francisco,” Mayor Daniel Lurie said in a statement. “Today, they want to be here, and Nordstrom Rack's decision to return to the heart of our city is another sign of the growing confidence in San Francisco.”Nordstrom co-CEO Erik Nordstrom also pointed to the city's efforts to revive its downtown shopping district.“The city has many wonderful assets, and it has clearly built momentum in making downtown a great place for customers,” he said in a statement.According to the Chronicle, the building at 2 Stockton Street is also slated for a major renovation valued at $60 million. Public records reportedly show that a permit was issued for a three-story vertical office addition and replacement of the building's Market and Stockton street facades.The former Forever 21 location closed in 2019, and then the space was briefly home to IT'SUGAR, a candy retailer, before sitting vacant again.The shuttered San Francisco Centre mall began its downward spiral when Nordstrom left in 2023, and that enormous vacancy on Market Street, along with other prominent vacancies on Stockton and Powell including the former Barney's, remain blights on the neighborhood. Macy's Union Square store remains open, but the retailer and developer TMG Partners are exploring possible future uses for the property.As SFist reported in August, the site of Nordstrom Rack's former location at 901 Market Street might be converted into apartments.Previously: Nordstrom to Shutter Downtown SF Department Store, and Nordstrom Rack, This Summer ...read more read less