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Anytime I look at Anthropologie for furniture and lighting and other larger home goods I am disappointed at how overpriced most of it is. No doubt that it is nice because there are plenty of things there that I like, but I have expensive furniture taste and tend to be a furniture snob (both vintage and new) and even I think their stuff is very overpriced for what you're getting.
Definitely happy it is coming here though as I hope it opens the door for more stores of a similar variety, but I was just reminded of why I don't normally shop there even in cities that do have them when checking out their website again today. My wife will probably end up going there for some clothes though and I am very happy for what it brings to that spot in downtown.
Last edited by Sunbather; 01-13-2013 at 07:37 PM..
Greenville has more available space than Charleston does, therefore it's not difficult to have larger stores here than in Charleston.
Retailers want to squeeze every dollar out of their square footage and their target is get each store to achieve certain square footage goals, along with strong margins. No retailer is going to build a larger store simply because space may exist, they would be shooting themselves in the foot. Retail chains build larger stores when they think the market demand is there to keep the sales per square foot high.
Retailers want to squeeze every dollar out of their square footage and their target is get each store to achieve certain square footage goals, along with strong margins. No retailer is going to build a larger store simply because space may exist, they would be shooting themselves in the foot. Retail chains build larger stores when they think the market demand is there to keep the sales per square foot high.
Obviously retailers want the gross margin to be high but that is only the begininng of the income statement. Like any business, there is no single equation that makes sense for every scenario, retailers who follow a simple model will not be around long term. If a store will produce high margins because of any number of reasons, including cheap rent, they will overlook other ratios. Sales per sq foot is one measure and is especially meaningful when looking at year over year statistics. More importantly to shareholders and the board is how much money a store is making. If rent is cheap enough, the store could be highly profitable without large sales per sq foot sales numbers. Any board would chose a higher profitability. In this case, there is simply more space and Greenville wants to make a statement with the development to change the perception of downtown. So, sales per sq foot may not mean as much here than it does in Charleston or other more established cities.
In this case, there is simply more space and Greenville wants to make a statement with the development to change the perception of downtown. So, sales per sq foot may not mean as much here than it does in Charleston or other more established cities.
Not quite....
Check your numbers. Retail leases per square foot on King Street in Charleston and in One Greenville are almost identical. Anthropologie would not simply throw away dollars on rent and add 2,000 additional square feet if the expectation of market demand was not there.
Also, you state "Greenville wants to make a statement".... The size of Anthropologie has nothing to do with any kind of statement the city of Greenville wants. The size of Anthropologie has everything to do with what the executives within the company want, and being a retailer, making money is the first priority.
Not quite....
Check your numbers. Retail leases per square foot on King Street in Charleston and in One Greenville are almost identical. Anthropologie would not simply throw away dollars on rent and add 2,000 additional square feet if the expectation of market demand was not there.
Also, you state "Greenville wants to make a statement".... The size of Anthropologie has nothing to do with any kind of statement the city of Greenville wants. The size of Anthropologie has everything to do with what the executives within the company want, and being a retailer, making money is the first priority.
Not so fast......rents in downtown Charleston are in fact higher than Greenville. Specifically to One, Hughes received a large tax credit to build the development., the only way it got off the ground. These credits are designed to encourage development in stressed areas. So, this lowers the bar considerably on what Hughes needs in rent to obtain a strong return. the stated rent may be vastly different than what Is paid. In fact, many other factors determine the financial impact of a lease......when the tenant starts paying rent, CAM, build out costs etc.....
As for Anthropologie, sure their first priority is to make money. In the case of their One store, the city is encouraging national retailers to locate on Main with incentives like tax credits. This has been a stated goal for years. Much like BMW was provided incentives to locate in Greenville, these credit allow stores like Anthropologie to build a store at One with a lower fixed cost, enabling a high profitability. The BOD could care less about sales per sq foot if they are paying next to nothing in rent. the only question is how long it will be before they pay anything close to market rent.
Now, I am not saying it is a terrible idea. Many national retailers pay varying levels of rent due to circumstances at all centers. In this case, the city of Greenville made a decision that they wanted national retailers on Main. In order to accomplish this, incentives were/are necessary. The question is not if Anthropologie received incentives, it is how much. To suggest that downtown Greenville can attract rental rates close to downtown Charleston is a stretch. Charleston is a larger/wealthier city who attracts over 5m visitors annually, we simply are not in that league.
Just curious, with Greenville's low income levels, what makes a retailer who sells $100 jeans and oher high merchandiese want to be here paying market rent?
I'm pretty sure Anthropologie didn't receive any tax credits or incentives. Oh and something seems very fishy about Vhammond's posts. Hmmm.
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