The world of 5th Avenue in New York City won’t ever be the same Post-COVID. Notable brands that once housed the retail locations on 5th Avenue have begun terminating their contracts, saving what financial reserves are still available. Brands like Valentino, a Luxury Handbag Maker have pre-emptively issued a lawsuit against New York City after terminating their retail contract. Other brands like Barney’s have flat out closed their Madison Avenue location, blockading the doors & turning off the lights. It’s also known that Neiman Marcus will close their 5th Avenue Department Store, extending this closure to Palm Beaches Worth Avenue.
President Donald Trump believes that the American economy has been unaffected by the COVID-19 Pandemic, blatantly lying to his constitutions in hopes of acquiring more votes. Closures seen throughout 5th Avenue show that Donald Trump is incorrect in his economic assumptions. This is the most luxurious shopping location in the United States, with notable brands leaving & being replaced retail companies like Vans.
The associated cost of renting retail spaces throughout 5th Avenue has dropped tenfold, with New York City lowering the rates to ensure new retailers are opening locations in Manhattan’s Shopping District. It also guarantees that jobs aren’t being lost at substantial rates for NYCs 5th Avenue. However, associated salaries have dropped with the loss of high-scale brands. It should be clarified that Chicago, Los Angeles, and Las Vegas have all experienced similar closures with their luxurious shopping centres. This proves an economical retail collapse across the United States.
The JLL Retail Advisory Firm was questioned by CNBC Business on what’ll happen to luxurious shopping blocks during Post-COVID. President Naveen Jag emphasized that all metropolises in the United States will maintain a mixture of retail brands. There’ll be conventional retail stores associated with the Middle Class, then luxurious brands for the rich & famous. This resembles a similar shopping environment for the 2008 economic collapse, but on a larger scale. It’s suspected that brands like Timberland, Vans, Five Below, H&M, and Tommy Hilfiger will take up the retail space available on 5th Avenue.