Faced with intense time constraints, most consumers might be forgiven for prioritizing convenience over a stellar experience. This preference represents a strong driver of the shift toward e-commerce, such that online shopping appears responsible for the so-called retail apocalypse. But in New York City, some of the most renowned fashion brands in the world appear poised to make a comeback, not just by opening new businesses but by reinventing the way they do business in the first place.

In particular, the entry of various mid-size boutiques into the New York scene appears dominated by the goal of prioritizing customers’ physical experiences. The process of buying and wearing clothes arguably is an inherently tactile experience, and in embrace of that notion, some brands, like LuisaViaRoma, have determined to build and expand their brick-and-mortar locations.

At the same time, other brands are prioritizing the addition of social elements to shopping experiences. For example, some physical stores screen films and expert talks that reflect the company ethos. Rather than tactile connections, this approach prioritizes the intangible qualities of a retail environment.

As a way to provide both tactile offerings and experiential retail, pop-up shops also appear to be experiencing a boost in popularity. Various fashion houses host exclusive sample sales or cocktail parties. Smaller retailers and startups have turned to pop-up strategies as an effective way to avoid soaring rents. Even consumer product brands are filling up the pop-up space, and experiential offerings such as sports teams and television shows establish branded experiences and exclusive merchandise.

All together, these combined strategies seem to be providing a foundation for a marked recovery for New York retail. The shift is particularly notable in communities that had been decimated by the pandemic. Whereas Midtown suffered vacancy rates that neared 30 percent in 2021, and Manhattan’s rate reached 28 percent overall, brokerage firms now estimate vacancies to have dropped to just 15.4 percent, and further improvements are projected. The revival is not restricted to Midtown, a traditional fashion destination, either. Flatiron, Nolita, and the Upper West Side all have emerged as increasingly desirable retail locations, due to the combination of residential and commercial locations they host—a combination that helps brands establish a loyal and local customer base.

Discussion Questions

1. What are some of the key advantages of a pop-up shop for different types of retailers?
2. What features can physical stores offer to improve convenience, and perhaps compete even more effectively with e-commerce?

Sources: Max Berlinger, “New York Was a Shopping Town. Is It Again?” The New York Times, October 22, 2024; Greg David, “New-to-New York Stores Are Helping Turn Around the Retail Apocalypse,” Flatiron Nomad, May 2, 2024; Martina Italiano Di Licosa, “Pop-up Shops Are Changing Midtown’s Retail Playing Field,” Columbia Journalism School, November 4, 2024