Retail coming to Philadelphia (Washington, Lincoln: Publix, baby, industry)

[cpomp]

Originally Posted by asiandudeyo

So it is confirmed now.

Design within Reach scraps plans for big East Market project

Would a Boston location really be that much more profitable then a Philadelphia location? Something is missing...

"Some say the tough retail environment and the oversupply of stores in Center City may have forced DWR to change course and focus on other cities."

Oversupply? That makes no sense. Retail in Philadelphia is pretty lackluster across the board... I think maybe it really is just a weak market in Philadelphia.

When you put the city into perspective. 1/4 is in poverty, the remaining 75% is vastly middle/ working class, you have one small bubble of wealth in Center City, a good chunk of which has probably moved in from the suburbs, another good chunk of spenders are students who tend to be very transient. The city has a high amount of tourists, but not the same tourists that visit NYC, Miami, LA. People go to those cities to shop and spend big money, Philadelphia is more of a cultural, historic excursion (nothing wrong with that).

The suburbs of Philadelphia have a lot more people, a lot more wealthy and educated people, which correlates to more disposable income and an increased taste for finer goods (furniture, clothes, accessories, cars, etc.) And pretty much every major retailer and designer already has a presence in the SEPA market, mainly in KoP, so a Philadelphia location is not needed/ would pale in comparison to the suburban locations. The only noticeable leg-up Philadelphia has is the amazing and growing restaurant/ culinary scene.

Philadelphia relies more on its suburbs then the other way around, which is not the case for many if any other huge cities in the US. The only way for the city to continue to reinvent itself and attract stores, businesses, people, etc. is to learn from other large American cities and take from them. Retail aside, the city is going to remain stuck until it politically reinvents itself. Leaders are more worried about trivial things then the big picture.

[Duderino]

Originally Posted by cpomp

Oversupply? That makes no sense. Retail in Philadelphia is pretty lackluster across the board... I think maybe it really is just a weak market in Philadelphia.

It was very recently reported that CB2 signed a relatively large lease on Walnut, a store that seems to be a very direct competitor to DWR. I'd have to think that played a major role in this decision.

This, too:

Herman Miller Inc., which owns DWR, also announced flat results for the fourth quarter ending June 3, 2017, with net sales of $577.2 million, a decrease of 0.9 percent from last year. New orders in the fourth quarter were down 6.3 percent from the previous year.

Design within Reach scraps plans for big East Market project

It just seems like they weren't willing to assume any risk whatsoever with Philly, which is a shame and doesn't seem to reflect the reality of increasing demand for home wares in Philly (are all these new Class A Center City apartments/condos being furnished with cardboard couches?)

But let's not forget this is one of the most highly trafficked corridors in the city by both residents and tourists alike. Especially with a grocery store to drive foot traffic, it seems like a no-brainer for many retailers.

[kyb01]

You guys may not be thinking about something else that may be affecting retail: down sizing older Boomers.

I've posted that I am not buying clothes like I used to and I'm still actively giving away stuff I will never wear again. Seriously.... I do not need 50 pairs of shoes now(lol) and I may not buy another pair until I actually need another pair.

Furniture/ home furnishing? Sure, I will check out CB2 since I like their stuff. But will I buy anything? Probably not. I'm about ready to start ditching my excess furniture. None of it will ever be replaced.

And I'm not the only Boomer retiree who's downsizing.

[AJNEOA]

Originally Posted by kyb01

You guys may not be thinking about something else that may be affecting retail: down sizing older Boomers.

I've posted that I am not buying clothes like I used to and I'm still actively giving away stuff I will never wear again. Seriously.... I do not need 50 pairs of shoes now(lol) and I may not buy another pair until I actually need another pair.

Furniture/ home furnishing? Sure, I will check out CB2 since I like their stuff. But will I buy anything? Probably not. I'm about ready to start ditching my excess furniture. None of it will ever be replaced.

And I'm not the only Boomer retiree who's downsizing.

Well, the Millennial generation is even larger. Although there are a TON of boomers in Philly. I think cpomp had good reasoning:

When you put the city into perspective. 1/4 is in poverty, the remaining 75% is vastly middle/ working class, you have one small bubble of wealth in Center City, a good chunk of which has probably moved in from the suburbs, another good chunk of spenders are students who tend to be very transient. The city has a high amount of tourists, but not the same tourists that visit NYC, Miami, LA. People go to those cities to shop and spend big money, Philadelphia is more of a cultural, historic excursion (nothing wrong with that).

The suburbs of Philadelphia have a lot more people, a lot more wealthy and educated people, which correlates to more disposable income and an increased taste for finer goods (furniture, clothes, accessories, cars, etc.) And pretty much every major retailer and designer already has a presence in the SEPA market, mainly in KoP, so a Philadelphia location is not needed/ would pale in comparison to the suburban locations. The only noticeable leg-up Philadelphia has is the amazing and growing restaurant/ culinary scene.

[cpomp]

Also read today that AllSaints is coming to KoP.

Very similar to Theory, Vince, Rag & Bone.

[kyb01]

Originally Posted by AJNEOA

Well, the Millennial generation is even larger. Although there are a TON of boomers in Philly. I think cpomp had good reasoning:

Yes, I know the millennial generation is larger. But isn't it true that many milliennials don't yet have anywhere near the disposible income that Boomers and GenX have? Boomers were never saddled with huge student loans, for instance.

Agreed. I think cpomp has a clear view of things.

[cpomp]

Originally Posted by kyb01

Yes, I know the millennial generation is larger. But isn't it true that many milliennials don't yet have anywhere near the disposible income that Boomers and GenX have? Boomers were never saddled with huge student loans, for instance.

Agreed. I think cpomp has a clear view of things.

True, I also think Milliennials spend more money on food, drink, and entertainment then past generations and less on tangible merchandise.

[kyb01]

Originally Posted by cpomp

True, I also think Milliennials spend more money on food, drink, and entertainment then past generations and less on tangible merchandise.

The initial restaurant renaissance in Philly was helped enormously by the so called Silent generation and Boomers almost 50 years ago... well, I think you know that. But, yes, your generation likes having fun.

[AJNEOA]

Originally Posted by kyb01

Yes, I know the millennial generation is larger. But isn't it true that many milliennials don't yet have anywhere near the disposible income that Boomers and GenX have? Boomers were never saddled with huge student loans, for instance.

Agreed. I think cpomp has a clear view of things.

Originally Posted by cpomp

True, I also think Milliennials spend more money on food, drink, and entertainment then past generations and less on tangible merchandise.

I agree with both of you. It's often said that Boomers spend money on things, and Millennials spend money on experiences (e.g. food, entertainment, etc.).

[Pine to Vine]

Originally Posted by AJNEOA

I agree with both of you. It's often said that Boomers spend money on things, and Millennials spend money on experiences (e.g. food, entertainment, etc.).

I must be a millennial in boomer's clothing.