So here we are two months before Christmas and what are major retailers doing to save their business? Cutting space.Hudson’s Bay Co., which owns Lord & Taylor and Saks Fifth Ave, announce a deal with WeWork, the office-space rental firm for its New York City Lord & Taylor flagship store.
Under the deal WeWork will buy the building and lease back a portion to Hudson’s Bay, while taking the remainder of the space for itself.
Certainly this is a sign of the times that a well-known retailer is giving up valuable 5th Ave retail space for much-needed cash to pay down debt.
Look at Toys R Us, going through a contenuous bankruptcy as the Holiday shopping season begins. The toy retailer is desperate to get merchandise into its stores as vendors balk on terms.
These vendors no longer need to be beholden to Toys R Us, since Amazon and Wal-Mart are viable alternatives to sell toys and games to consumers.
And lastly, NYC commercial real estate is taking it on the chin with plenty of inventory for these Holiday pop up stores. I have seen pop ups for Pringles potato chips and Halloween costume stores, where name-brand retailers once stood.
This Holiday shopping season will be more about the future of retail, than the past. From the shuttered mall stores and retail spaces to ordering and delivery of gifts on Christmas Eve tis the season of change.