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Chain retailers reduce footprint in NYC for the first time since 2008 crisis

By Marjorie van Elven

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Retail

For the first since 2007, retailers are closing more chain stores in New York City than they are opening. The number of chain stores in the Big Apple has declined by 0.3 percent over the past year, according to the latest annual ranking of national retailers in New York City, published by the Center for an Urban Future (CUF).

Never before has CUF registered so many national retailers reducing their footprint in NYC. In 2018, a record 124 retailers (that’s 37 percent of the 331 companies analyzed in the study) have closed stores, compared to just 65 in 2017 -- a staggering 91 percent increase. In total, more than 7,800 shops have shut their doors this year. The slowdown is led by Manhattan, where the number of chain store locations has dropped by 2.3 percent. 108 retailers have not changed the amount of stores they operate in NYC, while 99 increased their footprint.

Gap, Bebe, True Religion and Armani Exchange closing stores in NYC

Unfortunately, CUF’s report shows that most national chains reducing the number of stores they operate in NYC belong to the apparel, shoes and accessories category. “Clothing retailers have had more losses in retail locations than any other category in our analysis. Of the 86 clothing and accessories retailers we analyzed, 32 lost stores and 48 did not add locations. Of the 16 that expanded their footprints, none added more than four locations”, said CUF in a statement.

Footwear retailer Aerosoles tops the list, having closed a total of 13 locations, followed by Sunglass Hut, with 8 closed stores. BCBG Max Azria and Lids share the third place with a loss of 7 NYC shops in 2018. Gap, Banana Republic, Armani Exchange, True Religion, Aeropostale, Dr Jays and Fossil are also featured on the list.

Most retailers expanding their presence in the city are cellphone service providers, coffee shops and fast food chains.

Picture: Pixabay

Center for an Urban Future
Chain stores
State of the Chains 2018