Business closures continue in downtown San Francisco as the city's retail and commercial property market struggles, with AT&T joining a long list of companies that have recently shut down their flagship stores in the City by the Bay.

The telecommunications giant has told the San Francisco Standard that it will be closing its flagship store in Union Square, in the city's downtown, on August 1 to better serve its customers.

"Consumer shopping habits continue to change, and we're changing with them," Chris Collins, a spokesperson for the company, told the local newspaper on Thursday. "That means serving customers where they are through the right mix of retail stores, digital channels and our phone-based care team."

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