[PHLtoNYC]

Originally Posted by 3rd&Brown

I work for a company with an expanding retail fleet. Granted, we have definitely scaled back our expansion plans. Initially, we intended to open 40 stores this year, and now we're planning about 15.

That being said, retailers see this an as opportunity but are watching rents and really want the best locations. We're attempting to re-negotiate nearly all of our existing leases (which takes time) and there is limited human capital in these departments to do this...but for sure we're watching.

We definitely have Philadelphia on the list. I think part of the issue with Philadelphia is that there is Walnut Street and then (nearly) nothing else. And the rents on Walnut are exhorbitant. Still.

Philadelphia really needs to develop a secondary (good) high street for shops that don't need to be among top designers and market it, develop it, and support it. I know y'all are gonna say that's Chestnut...but Chestnut still feels like a bargain bin on most blocks.

For me, N 3rd in Old City feels like a contender but it's very tight (space wise) and the locals would freak about parking etc if some high volume stores came in.

Some of our highest grossing stores are just in neighborhood store fronts in solid neighborhoods with good demographics. Nothing like Walnut Street. Philadelphia doesn't have an antecedent.

So the hesitation in your experience is related to a lack of "catchet" outside of Walnut Street?

I also figured a lack of sizable parcels to house larger format stores was an issue in CC too. Market Street has the potential to house large home stores, "big-box" retailers etc. And now Broad just South of City Hall has a few large open spots.

Originally Posted by skyhigh07

Whatever floats your boat, but I honestly don't understand this mentality amongst retailers. I've heard the "retailers are too afraid to go outside Walnut St" argument for years. At this point, Rittenhouse has enough foot traffic and buying power for higher end retailers. I personally know a lot of residents in the area that are frustrated by the lacking of it. With the amount of luxury apartments and condos going up in the area, retailers should be paying attention. Chestnut St is hardly a "bargain block" anymore. Sure you have your typical mall retailers - Uniqlo, Express, J Crew, Old Navy etc, but its strange how some continue to hold that view when the W, Ritz and Four Seasons Hotels are a block away. Even Boyd's should be more of an anchor, but for some reason it doesn't seem to be as much as it should.

I can somewhat understand the reluctance to open up shop east of Broad, but the hesitancy to relocate anywhere between one of the region's wealthiest neighborhoods and the city's central business district besides Walnut leaves a lot of residents perplexed.

Yea, I am lost, and I guess it really comes down to rents? Banana Republic is closing its longstanding Broad & Walnut location, due to "issues renewing the lease". The space will be split into (2) retail spots, one of which will be a bank...

Banana, Zara, Cole Haan, etc. all left likely due to rents, yet they didn't / won't relocate elsewhere in CC. Does that mean they didn't find it worth the cost to even consider a new location? Yet all those stores were always relatively busy, I don't get it...

I was in Chicago last weekend and Lego World, American Girl, Zara, Starbucks Roastery, Adidas all had lines out the door! Why those types of retailers aren't in Philadelphia is perplexing to me. I am not talking about Gucci or Hermes, but basic retailers to generate sales and foot traffic or experiential type places like Lego World.

I hope for a rebound / rebirth in the coming years, because besides the convenience factor, its not a good look when there is literally nowhere to shop besides a few local boutiques, and I don't think "Shoppers World" will elevate Market Street, maybe Primark will though.

Also, comparing to KoP, there is no trouble leasing space or attracting retailers to that entire region. I am guessing lower rents, more sales, more parcel opportunities, less social issues (crime, unrest, vandalism)? Just asking if anyone wants to answer.