Retail coming to Philadelphia (Paoli, Thorndale: discounts, sports, Thursday)

[cpomp]

Originally Posted by PHLondoner

Michael Kors and Under Armour both closed along Walnut. Retail vacancies are piling up.

At 17th, either a Citizen's Bank is taking over the old Aerosoles, or it's providing the financing for something else - the sign in the window is a bit confusing. My guess since we have not heard any rumors/excitement about a new retailer that it's going to be a CB...which sucks.

Seems that the whole retail market is a bit influx at the moment with the Gallery/Fashion District project potentially luring/fighting for tenants eastward. Walnut is in a weird stasis, and has been for almost a year now.

Wow, those are two huge losses. Surprised MK couldn't make it in Philadelphia... don't people shop?

I am surprised Rag & Bone hasn't closed yet either. And hopefully that corner won't be another bank.

There could be several factors for the fall of Walnut St...
1) Rents too high, that is what happened to Bleecker in NYC
2) Under performing stores, struggling brands (national trend)
3) Competition from KoP

[PHLondoner]

Originally Posted by cpomp

Wow, those are two huge losses. Surprised MK couldn't make it in Philadelphia... don't people shop?

I am surprised Rag & Bone hasn't closed yet either. And hopefully that corner won't be another bank.

There could be several factors for the fall of Walnut St...
1) Rents too high, that is what happened to Bleecker in NYC
2) Under performing stores, struggling brands (national trend)
3) Competition from KoP

Yeah Under Armour was an awesome storefront too. Barely lasted 2 years.

I think it's a combo of your factors plus the influence of Fashion District. If you are a national brand from LA looking at Philadelphia for a store, you can pay $150 per square foot to retro-fit a 150 year old building, or you can pay a fraction of that and move into a custom suited build out at the Fashion District 6 blocks away. At the very least, it would (should?) give these brands pause to pull the trigger on signing - which I think is contributing to the lack of movement.

A place like a Levis Store - which would have fit right at home on Walnut - chose the Fashion District instead.

[cpomp]

Originally Posted by PHLondoner

Yeah Under Armour was an awesome storefront too. Barely lasted 2 years.

I think it's a combo of your factors plus the influence of Fashion District. If you are a national brand from LA looking at Philadelphia for a store, you can pay $150 per square foot to retro-fit a 150 year old building, or you can pay a fraction of that and move into a custom suited build out at the Fashion District 6 blocks away. At the very least, it would (should?) give these brands pause to pull the trigger on signing - which I think is contributing to the lack of movement.

A place like a Levis Store - which would have fit right at home on Walnut - chose the Fashion District instead.

But I don't exactly see the retailers lining up for the "fashion district" either. The plan has already gone through several iterations because of the lack of interest from national retailers.

But since there hasn't been much press on the project lately, my hope is that retailers are actually lining up, so the losses on Walnut/ Chestnut will be supplemented with the new district.

[PHLondoner]

Originally Posted by cpomp

But I don't exactly see the retailers lining up for the "fashion district" either. The plan has already gone through several iterations because of the lack of interest from national retailers.

Well, again, common sense tells me that retailers are probably watching how everything unfolds at Fashion District, but maybe afraid to take the full plunge until they see how everything shakes out - who signs, early demographic trends, etc. Like a group of tweens staring at a 50foot drop to a shady watering hole below. "You first."

I think once it's open, the spigots will open up again and we'll get a sense of how the entire Center City market can come into an equilibrium. Right now, there's just so much uncertainty.

[kyb01]

Originally Posted by PHLondoner

Michael Kors and Under Armour both closed along Walnut. Retail vacancies are piling up.

At 17th, either a Citizen's Bank is taking over the old Aerosoles, or it's providing the financing for something else - the sign in the window is a bit confusing. My guess since we have not heard any rumors/excitement about a new retailer that it's going to be a CB...which sucks.

Seems that the whole retail market is a bit influx at the moment with the Gallery/Fashion District project potentially luring/fighting for tenants eastward. Walnut is in a weird stasis, and has been for almost a year now.

Wait till the tariffs affect retail. They will eventually.

[kyb01]

Originally Posted by cpomp

Wow, those are two huge losses. Surprised MK couldn't make it in Philadelphia... don't people shop?

I am surprised Rag & Bone hasn't closed yet either. And hopefully that corner won't be another bank.

There could be several factors for the fall of Walnut St...
1) Rents too high, that is what happened to Bleecker in NYC
2) Under performing stores, struggling brands (national trend)
3) Competition from KoP

A lot of people(30 something millennials) are having babies. Lots of strollers in the city. Can 20somethings who probably owe lots of student debt afford shopping very much? Empty nesters are around but ....

As I said, I don't shop for clothes like I used to. My retirement wardrobe does not match my working one. And now I may get something new a few times a year. When I was working I was getting something new just about every month. So someone like me isn't helping.

Restaurants are busy so people are spending that way.

[kyb01]

Originally Posted by PHLondoner

Well, again, common sense tells me that retailers are probably watching how everything unfolds at Fashion District, but maybe afraid to take the full plunge until they see how everything shakes out - who signs, early demographic trends, etc. Like a group of tweens staring at a 50foot drop to a shady watering hole below. "You first."

I think once it's open, the spigots will open up again and we'll get a sense of how the entire Center City market can come into an equilibrium. Right now, there's just so much uncertainty.

The tariffs may end up triggering a recession so keep that in mind.

[Duderino]

It's unfortunate that Walnut St. is facing headwinds again after a really good run, but I think bearing in mind that it's consistent with national, even global, footprint-shrinking trends right now for retail means that Philadelphia's simply in the same large boat as many other cities. Both MK and Under Armour, for example, aren't doing so hot company-wide:

Under Armour is in serious trouble

https://www.google.com/amp/s/amp.usa.../amp/102341052

The good news is that Walnut has proven to be a very resilient and creative corridor that's continuing to diversify its offerings. More "experience" or entertainment type venues are bound to take the places of these types of vacancies, which is definitely better in the long run.

[cpomp]

Originally Posted by Duderino

It's unfortunate that Walnut St. is facing headwinds again after a really good run, but I think bearing in mind that it's consistent with national, even global, footprint-shrinking trends right now for retail means that Philadelphia's simply in the same large boat as many other cities. Both MK and Under Armour, for example, aren't doing so hot company-wide:

Under Armour is in serious trouble

https://www.google.com/amp/s/amp.usa.../amp/102341052


The good news is that Walnut has proven to be a very resilient and creative corridor that's continuing to diversify its offerings. More "experience" or entertainment type venues are bound to take the places of these types of vacancies, which is definitely better in the long run.

I agree, retail across the board is facing an uncertain future, it just seems that the Philadelphia locations are always the first to get the ax, likely due to the fact that they were under-performing stores to begin with.

Ralph Lauren, Coach, and now MK are perfect examples... they need a presence in a major area like Philadelphia, but they also choose which store to keep in harsh times, all of those retailers remain in KoP (Coach has two spots there)... So I agree that this is not just a Philadelphia problem, but the market in Philadelphia (city) is hot right now, if retailers don't feel a need to keep a store on Walnut, even if its not making any money.

I am glad Walnut is trying to diversity itself, and I think the city can also help itself by bringing in more everyday retailers (Bed Bath & Beyond on Market), I mention them all the time, because those are the stores that people in the city have no choice but to drive to PA or NJ suburbs. At least with MK you can shop online.

Originally Posted by kyb01

A lot of people(30 something millennials) are having babies. Lots of strollers in the city. Can 20somethings who probably owe lots of student debt afford shopping very much? Empty nesters are around but ....

As I said, I don't shop for clothes like I used to. My retirement wardrobe does not match my working one. And now I may get something new a few times a year. When I was working I was getting something new just about every month. So someone like me isn't helping.

Restaurants are busy so people are spending that way.

I know young people spend money in different ways nowadays, but stores like MK shouldn't have any problems in a city like Philadelphia. That is why I think its a combo of struggling brands and weak market in the city.

[mphilly]

Horrible news, that Under Armour storefront is great. I’ve said before that retail is dying but it’s still sad to see Walnut Street start to struggle.