© Reuters. FILE PHOTO: The AT&T logo is visible in a store window, as airports across the country await Verizon and AT&T launches of its 5G technology, in the Manhattan borough of New York City, New York, US January 19, 2022. REUTERS/Brendan McDiarmid
(Reuters) – U.S. wireless carrier AT&T (NYSE: ) said on Friday it would close its flagship store in downtown San Francisco, deepening real estate woes in the once-thriving tech hub hit hard by the pandemic.
Stores in San Francisco closed in an effort to shrink real estate in the face of declining customer visits, occupancy and sales. Office buildings are becoming empty as more people work from home, as well as massive layoffs by big tech companies.
AT&T said the Powell St store will close on August 1 and all retail employees affected by the change will be offered jobs at one of its other locations in the city.
A spokesperson for the company said, “Consumers’ shopping habits continue to change, and we change with them. That means serving customers wherever they are with the right mix of retail stores, digital channels and a phone-based care team.”
Earlier this week, Unibail-Rodamco-Westfield said it would turn the Westfield San Francisco shopping center over to the lenders. Nordstrom (NYSE: ) said last month that it would drop its downtown store in the mall.
Real estate investment fund Park Hotels & Resorts (NYSE: NYSE) also said last week that it had stopped making payments on a $725 million mortgage linked to the Hilton San Francisco Union Square and Park 55 hotels.
In April, AT&T reported dismal cash flow and missing market estimates for first-quarter revenue, underscoring losses from strained consumer wallets.
