Posted by Leonard Steinberg on January 16th, 2012
Holiday retail foot traffic in New York grew at an impressive rate of 4,7% in 2011 compared to the rest of the USA that saw foot traffic drop off by 3,1%. This is mostly attributed to strong tourist activity……regardless, this is very good news indeed and impacts both commercial and residential real estate in a positive way.
It is further proof that New York as a city delivers a superior retail experience: while every major city in the USA has an Hermes, Prada and Gucci store, only New York can boast a Bergdorf Goodman, Jeffrey and Eataly. Aside from the unique, smaller specialized stores, the variety is what makes New York retail so incredibly enticing. For international visitors, great retail mixed with great culture, food and competitive pricing is a strong recipe for success. While the obvious ‘big names’ draw crowds for sure, areas like the East Village, Nolita, Bleecker Street and the Meatpacking District deliver some more unique retail experiences mixed in with the usual suspects.
If there is one area that is missing out on a strong retail presence, it is West Chelsea. What on earth are all those thousands of Highline visitors tempted by beyond the typical Rite Aid mix? Not all of them can afford to pick up an item at Gagosian surely? In between there are rumblings of some good retail, but you have to walk over to the Meatpacking District for some retail satisfaction. Residential neighborhoods need to be careful not to alienate the critical retail that makes a neighborhood thrive by over-pricing their retail and converting all areas into a big mall. Humans need cleaners, shoe repair, tech stores, florists, coffee shops, magazine stands, etc. Wouldn’t it be wonderful if every new building had some of these important neighborhood assets mixed into their amenity packages?
Neiman Marcus Group Inc. swung to a fiscal second-quarter profit on steep write-downs a year earlier, as the luxury retailer posted higher revenue and lower expenses. The Dallas-based retailer is also owner of BERGDORF GOODMAN. Neiman’s is probably the most important barometer of the Luxury market, and this certainly is a good indicator of the luxury market in general. The key message appears to be that through cost-cutting measures along with improved sales, profits have improved too. The trend to profitability seems consistent: lay-offs. The harch bottom line is that lower income earners suffer at the expense of the top income earners who live for profit. This fuels a stronger luxury market, but reduces the spending power of the lower earners. Hopefully with this rebound the employment market will improve too as the need for additional help registers without impacting profits. All good for the luxury real estate market in New York.
Profits improved after their lay-offs in 2009.
Luxury buyers are also shopping more relative to the stock market increase.
With continued market stability one is hopeful Neiman Marcus will increase their staff and others will follow.
Hi – thanks for the post. I never know what I will come across when I scroll these blogs. But just wanted to let you know I really liked yours. Keep it up.
Sandy