Extravagant Flagship Stores Survive Retail’s Struggles
While retailers across the country struggle to keep their brick-and-mortar locations afloat, elaborate flagship stores are standing out as valuable assets for brand marketing.
The emergence of e-commerce has led to the shuttering of hundreds of stores across the U.S., but there is some hope for the fate of flagships given their tendency to be less about sales per square foot and more about the overall brand experience, The Real Deal reports.
Many retailers see this as such an important aspect of their overall presentation that they deem their expensive flagship sites a justifiable marketing expense.
Neiman Marcus’ 250K SF Hudson Yards complex is scheduled to open in the fall of 2018, while Nordstrom is opening its seven-level Central Park Tower flagship in 2019.
But it is not good news for all. Other stores are looking for news ways to gain value from their locations, including Hudson’s Bay Co., which has considered turning its Lord & Taylor building at 424 Fifth Ave. in New York into a mixed-use building by adding office and apartments to the top, TRD reports.
Macy’s similarly looked to investors in June to help determine ways to leverage its 34th Street flagship location. One idea being lobbied for is to build a park on the roof to attract more visitors.
In April, Ralph Lauren, once considered the leader in experiential retail, announced the shuttering of its Fifth Avenue Manhattan store.