Foreign retailers are more eager than ever to step into city stores.
“The European retailer that was nervous about coming over the pond, is now…interested in coming here to New York,” declared Nina Kampler, who heads tri-state retail and urban markets for CB Richard Ellis and just returned from London. “They know what they have to offer is different, and it will resonate with the consumer.”
There are now dozens of European-based retailers that are exploring opening a shop in New York, Kampler said. These companies may have 30 or so stores in Europe or in Turkey and are ready to grow and take advantage of still lower asking rents.
“Not only are they still coming, but even more so,” agreed Faith Hope Consolo, chairman of retail for Prudential Douglas Elliman, who has also been to London store meetings.
Consolo noted that the countries with stores are changing. “Where they were France, Italy and Spain, it’s now the UK, India and Russia — they have some designers and accessories. And those with lines in Bergdorf’s, Barney’s and Jeffrey, now want to expand into their own stores,” Consolo said.
“SoHo is usually the first stop for the European retailers,” said Ariel Schuster, executive vice president, Robert K. Futterman & Associates. “They know it, tourists go there and they will have their core customers.”
After Manhattan stores, Schuster believes they will cross over to Brooklyn, pointing to H&M which is going to 505 Fulton St. The European retailers are also familiar with Barney’s Co-op, which is now open on Atlantic Avenue.
Kampler says a new concept from H&M in London called COS “looks like something very, very different,” predicting the COS concept will soon come to America.
Schuster is now working on renting up 40,000 square feet of retail at 345 Adams St. contiguous to the Marriott and Morton’s Steakhouse, where the city’s first Panera Bread will soon open. Asking rents are $100 on the ground and $45 on the second floor.
Schuster expects European retailers will be comfortable enough to make the leap from Manhattan. “There is a real international buzz about Brooklyn,” he said.
The European stores should also be welcomed here as Kampler claims shoppers are getting tired of seeing the same old stores in every mall and on every street. Instead, she says, “what the consumer is voting is, if it’s an experience, I’m buying.”
