Stores Take Flight From Fifth Avenue In Manhattan
Bergdorf Goodman. Tiffany & Company. Louis Vuitton. Fifth Avenue in Manhattan is to shopping what Broadway is to theater, defined by the marquee names that for decades have occupied some of New York City’s most prized real estate. But lately, the avenue’s glittery window displays have been changing more quickly, as retailers have streamed in and out. Tourism has slowed while online shopping has sped up, making it harder for companies to justify the cavernous spaces and sky-high rents along the shopping strip. On Tuesday, Ralph Lauren became the latest retailer to pull up stakes, announcing that it would close its flagship Polo store at Fifth Avenue and 55th Street as part of a previously announced effort to reorganize the company. The move highlights how higher-end brands are not immune to the broader troubles facing brick-and-mortar retailers from online shopping and other competitors. Companies must often choose whether to invest in their online or physical stores — including showcase locations like those on Fifth Avenue. “The Fifth Avenue model seemed to work for a while, and then it got to a point where it just doesn’t work at this price anymore,” said Barbara Denham, a senior economist at Reis, a real estate data and analytics firm. “It got to the point where I think landlords were jacking up each new lease with higher and higher rent, and at some point, something had to give.” Read more at The New York Times.
