Reports regarding global tourism have begun to indicate that travellers are spending large percentages of cash at local retailers. This has extended to Times Square in New York City, with multiple merchants struggling to earn previous profits from a decade ago. Those retailers include the Gap, Cover Girl, Old Navy, American Eagle, Toys r’ Us and Coty Inc. This follows an increase in rent payments have occurred yearly, and tourists have begun to dwindle. Analysts have determined that limited retail shopping follows with the increasing presence of online retailers like Amazon and Etsy. It’s prompting retail locations to shutdown in Times Square, with real estate brokers working tediously to acquire new tenants. This has proven to be a challenging task for the highest-rated brokers in NYC.
Locations available for purchase include 1530 Broadway Street, which maintained a large-scale GAP. This extends to 1532 Broadway Street, which held a discounted Old Navy brick-and-mortar location. Additional venues available for purchase include 30 Times Square Blvd, which saw one of the fastest turnovers in Times Square history. Cover Girl opened their first flagship retail store, with it shutting down less than twelve months later. There’s also rumours that American Eagle Outfitters will shutdown their flagship times square location at 1551 Broadway Street.
Times Square hasn’t been remotely affected by the same levels that nearby retail neighbourhoods have experienced. The Manhattan District has seen rent prices drastically increase since 2010, with multiple retailers shutting down their doors and being replaced with office space. This included Toys “R” Us, which saw a nationwide shutdown in North America. Most of the contracts relating to these shutdown locations are in effect until 2023; this included both stores operated by Gap Incorporated. It’s estimated that this corporation in Times Square operates 80 thousand square feet. The Cover Girl location faces a similar decision of what to do, with them operation 10 thousand square feet until 2021. All companies are expected to re-invest their retail locations and re-approach the Times Square market by Q4 2020.
It’s not surprising that Gap Incorporated has shutdown both retail locations in Times Square. The company has faced significant setbacks in recent months, with their CEO being terminated in November 2019. Multiple locations in North America have been shut down, with executives working to revitalize the brand. However, it should be noted that their subsidiary of Old Navy, has performed better than anticipated throughout the last fifteen months. There could be hope for the Gap brand to become modernized and fashionable throughout the 2020s.