In tough economic times, consumers aren’t the only ones who alter their tastes and choices. Landlords are known to relent as well in the interest of filling vacant space. The New York Times (which is the parent company of About.com) even acknowledged that Manhattan landlords who are infamous for only renting to the most world-renowned designer brands would no longer hold out for these fashion houses.
Space once reserved for high-end retailers has now become a haven for discount and off-price stores, according to the Times. Stores like Forever 21 and H&M are filling spaces that have been vacated by luxury brands.
The discount counterparts of many popular brands and department stores are also getting in on the action. Stores like Saks Off 5th, Nordstrom Rack and the Bloomingdale’s outlet have all moved in or near some of the hippest neighborhoods in Manhattan, including Union Square, Lincoln Center, the Takashimaya Building and Times Square.
Then, there are off-price retailers like TJ Maxx and Syms, which buy up surplus merchandise from many of the same fashion houses that they may be replacing on Manhattan’s streets.
Experts say the shift from high-end retail to discount and off-price stores in Manhattan’s most elite locations isn’t that hard to explain. Off-price chains began receiving more upscale merchandise from the fashion houses when sales dipped during and after the 2007 recession. Costumers, in turn, learned they can count on these chains to provide solid, consistent, quality items. Discount stores achieved their prime locations by delivering more affordable versions of the latest fashion trends very quickly, thereby satisfying consumer demand.
Positive sales figures and an increase in popularity, combined with a consumer base that’s still wary of the Great Recession, has caused landlords to loosen their grips on their tenant preferences. Chances are, if it’s happened in Manhattan, it’s sure to happen elsewhere as well.