The renaissance of New York’s retail

Images of a deserted New York city, abandoned my commuters, and store shutters down in the immediate aftermath of the pandemic now seem a distant memory. The Big Apple is going through a renaissance evidenced by an upcoming fashion week which is back to its former glory (see MFF of August 31) and by a retail buzz that has not been felt in two years. A sort of retail renaissance, evidenced by the projects for single-brand and multi-brand research and high-street store openings that are reshaping the face of historic shopping areas and enlivening some neighborhoods. «The luxury market in New York is coming back strong after two years of pandemic which caused a correction in rental values. The average fees and the demand of high-end retailers are growing, as demonstrated by the new openings recorded and announced in recent months», Cushman & Wakefield experts told MFF.

Under the spotlight there are the two main luxury streets of the city, Fifth Avenue and Madison Avenue, along with Soho, especially from Broadway to West Broadway and from West Houston Street to Canal street. «All these streets have shown a constant growth trend in rents since 2021, with values still lower than 2019 but steadily recovering. In terms of rents recorded in the second quarter of 2022, Upper Fifth Avenue remains the most expensive with 26,920 dollars (27.033 euros at yesterday’s exchange rate) per square meter per year, while Lower Fifth Avenue arrives at 6,470 dollars (6,497 euros). Madison Avenue is at 8,000 dollars (8,034 euros) and 3,340 dollars (3,354 euros) in Soho», the experts explained. «Madison Avenue is full of news, starting with Hermès, which will open there one of its largest stores in the world next month: about 4,400 square meters at 706 Madison on the corner with 63rd Street. Chloé just opened at 715 Madison Avenue. Panerai, however, is moving to the corner of 711 Madison and 63rd Street with a record-breaking rent. Kiton took 692 Madison while Isabel Marant just opened at 675 Madison», Cushman & Wakefield added. Other top transactions are worth noticing as well, still linked to the Avenue, such as Jaege-LeCoultre (at number 701 with about 580 square meters) and Tumi (at number 575 with about 370 square meters), while Chanel (with about 320 square meters) and Swarovski (with about 1,400 square meters) opened respectively at 730 and 680 Fifth Avenue, the same street chose by Sephora with its store on 1865 Broadway.

With exponential growth in online luxury sales in the US now accounting for more than 30% of this market, retailers' physical presence becomes a place to engage their consumers in an environment that reflects cultural values. «For many, the store needs to be a phygital, event-driven, collaborative, visually appealing environment where like-minded people can come together and interact, knowing that their purchase thus translates into something more affirming», they continue from Cushman, pointing out that «the luxury customers of gen z onwards are young, have a heightened awareness of various cultural, racial, sexual and socioeconomic diversities, and are cosmopolitan. Retailers know this and are looking for spaces that reflect it». Fashion week will also be an opportunity for the opening of new designer boutiques. On september 10 Givenchy will launch its Soho store with a party attended by the creative director of Lvmh’s fashion house, Matthew M. Williams.

During the fashion shows, Italy's Kiton will cut the ribbon on its storefront in the Big apple, while Alo Yoga, a deluxe sportswear brand undergoing a repositioning toward lifestyle with the launch of its Aspen line during fashion week, is set to open a new New York storefront inside Rockefeller Center, joining five other city locations. Also confirming this buzz is the evolution of multibrands. According to MFF reports, Matchesfashion is said to have in its plans the opening, between late 2022 and 2023, of a physical store on the model of London’s Carlos Place dedicated to the coolest brands of the moment and with private events for customers. Also expected within a year or so is the arrival of Elyse Walker, an independent California luxury retailer founded by the eponymous entrepreneur with her husband, which has signed on for two locations in New York as part of an expansion plan in the States. One storefront will be on Madison Avenue and will open its doors in the fall, the second one will be located on Moore Street in Tribeca and will see the light of day in early 2023. Both will be designed to captivate the residents of their respective areas. Confirming how much the Big apple is booming is the success of Two: minds, a deluxe multibrand founded by the former Jeffreys team and located in front of The maritime hotel in the Chelsea area. More opening announcements are expected very soon. (All rights reserved)