Historic San Francisco hardware store to close after 120 years following pandemic and retail shift

Pacific Heights Hardware, a beloved local hardware store that has serviced San Francisco for 120 years, will be closing at the end of May. Located at 2828 California Street in the nearby neighborhoods of Pacific Heights and Japantown, this local hardware store has served the community for generations and has established itself as a community institution. However, the continued acceleration of change in retail, partially propelled by COVID-19, coupled with shifting consumer habits have conspired to end its run.

The end marks an indelible end of an era for one of San Francisco's longest-running businesses. Declining pedestrian traffic, remote working, and fierce competition from national chains such as Home Depot and Ace Hardware made it financially untenable for the store to operate. One employee told SFGATE, "We just didn't have enough people coming in. It was costing us more to stay open than what we were making."

ALSO SEE: Attention, shoppers! JCPenney announces May 25 closures for 7 Stores — Is your location is affected?

Pandemic challenges and the rise of digital retail

Since COVID-19 first flared up, countless small businesses across the United States have either evolved or closed down overnight as consumer preferences changed quickly. Equally various pandemic restrictions early on led to many brick-and-mortar stores having to close, with many small shops reliant on in-person sales never to open again.

At the same time, retailers like Amazon, Walmart, and Home Depot were expanding their touchstone physical and digital models and garnering millions of consumers who were now trained to buy online. The retail giants also had business advantages relative to space, inventory, parking, and last mile delivery service, placing small businesses at an even greater disadvantage with limited space and workforce availability.

ALSO SEE: JCPenney shapes its future: Strategic store closures signal a new era for the retail giant

A changing urban and commercial landscape

The closure of Pacific Heights Hardware is indicative of a larger trend in the fabric of San Francisco’s commercial environments. Before 2020, the Bay Area was known as a tech innovation hub with a large workforce making regular commutes in and out of the city for work. The move to remote work prompted a mass exodus of employees from the city, which created a domino effect on businesses in the hospitality and retail sectos.

Neighborhood stores are experiencing declines in foot traffic, while well-capitalized big-box retailers have not only survived but have also expanded in the same markets. In the same area as Pacific Heights Hardware, there are several Home Depot and Lowe's locations, which offer a broader product and service range.

As Pacific Heights Hardware makes its preparations for a clearance sale to sell its remaining inventory, the sentiment for local residents is mixed: nostalgia for a longstanding institution vs. a realistic appreciation for the convenience of the larger stores. This closure exemplifies the decline of a business model that supported the local economy for over a hundred years and is a direct reflection of how digitalization, telecommuting, and preference for national chains are increasingly influencing the retail marketplace of today.