Up until now retail bankruptcies have largely spared flagships, but that trend ended last week when Ralph Lauren announced plans to shutter its Fifth Avenue flagship Manhattan store. Though the announcement raised questions about the challenges flagships might face in the future, Vornado CEO Steven Roth predicts these prime locations will ride out the storm.
In his annual letter to shareholders Roth said the retail slowdown is nothing more than a cyclical bump for flagships and prime malls, though it remains a massive disruption for the rest of the industry, The Real Deal reports.
Roth predicted high-end brands will seek the shelter of flagships while shuttering exterior locations to protect themselves in the current environment, where retail bankruptcies are exceeding those experienced during the Great Recession.
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