Democratic Gov. Gavin Newsom of California claimed Wednesday that retailers were not leaving San Francisco over concerns about crime, instead blaming the COVID-19 pandemic and telework.
“I think they’re — they’re struggling to recover from the pandemic. They’re struggling to come back,” Newsom told Fox 11 reporter Elex Michaelson in the interview.
“They’re struggling with the macroeconomic shifts, particularly as it relates to telework, as it relates to what’s the future of a downtown, is it stacking of offices, or stacking the people?” Newsom continued. “And they’re in the process of rezoning and rebirth and reimagination. By the way, I’ve seen that in San Francisco for decades.”
AT&T announced Thursday its flagship store in San Francisco would be closing, citing “changing consumer habits,” but many residents of the city have complained about open drug use and rising crime.
Multiple retailers have shuttered locations in San Francisco, including Whole Foods, Nordstrom and T-Mobile, many of which cited increasing crime in the city. California’s passage of Prop 47 in 2014, which made theft of under $950 a non-violent misdemeanor, also takes the blame, with a Target store in San Francisco saying it is hit by 10 incidents of theft a day according to employees.
Target reported $400 million in losses due to shoplifting in 2022 and estimates the losses could reach $500 million this year, CNBC reported.
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