National retailers from Macy’s to Starbucks have grim thoughts about Manhattan.
These national chains along with others are no longer thinking if they make it there, they can make it anywhere as New York has come to a grinding halt.
Diplomatically, Macy’s cites the lack of tourism and commuters working from home as the problem without mentioning that its flagship store on 34th Street was sacked by Black Lives Matter rioters last month.
“We expected New York City to be like the rest of the country when we reopened our stores here, but it’s a complete outlier,” Lawrence Berger, chairman of sports hat company Lids told The New York Post. “There is no way to make money. It’s not an economically viable situation.”
As more retailers report earnings the trend is clear, foot traffic at Manhattan stores is down by some 85 percent from the year earlier and no company has the foresight to know when those customers are coming back.
Starbucks, which has numerous outlets in Manhattan, reports most of it stores there have not yet reopened.
Yet as I wrote on Tuesday, Governor Andrew Cuomo believes there is a great chance that NYC visitors could bring Covid-19 to the city. These earnings reports speak volumes to the fact that no one is coming to New York City for a visit or for work.
While earnings reports remain apolitical, it is very easy to see that retail shareholders are taking it on the chin from the policies of New York City Mayor Bill de Blasio and Cuomo.
When will stores be able to open and make a profit in Manhattan?
Let’s just say that I don’t think Macy’s needs to have a big budget to decorate their shattered windows from last month for Christmas this year.