Record number of famous establishments closed in New York due to COVID-19 pandemic
'23.12.2020'
Olga Derkach
This year, due to the COVID-19 pandemic in New York, almost one in seven branches of major chain brands has closed. The edition told in more detail New York Post.
A record 12 chain stores have closed in the past 1 months, including 057 Duane Reades, 70 Starbucks and 49 Papyruses, according to the Center for the Urban Future's annual report.
This is 13,3% of the total number of large chain stores in New York. This figure breaks all previous records that the nonprofit agency has reported since it began tracking data 13 years ago. Last year, only 3,7% of the city's chain retail outlets closed, in 2018 - 0,3%.
“If large national chains shrink in this way, then the situation is twice as bad for small family stores, which do not have the resources to weather the crisis and do not have access to this level of funding,” said center manager Jonathan Bowles.
Manhattan has taken on the biggest cuts, with 520 retailers closed, nearly half of the total so far this year. This situation is due to the district's dependence on office workers, tourists and wealthy residents, all of these categories have declined in New York due to the pandemic.
Midtown East, the stretch from Rockefeller Center and Fifth Avenue to 60th Street, suffered the most, with stores declining 23%.
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Sandwich shops serving office workers were among the worst-hit sectors, according to the report.
The report says that Dunkin 'Donuts, which changed its name to DD in 2019, remains the largest retail chain in New York City with 608 locations. But even she closed a record 18 stores, her first year-on-year loss.
Gyms and pharmacies have also been hit as people have started to exercise more at home and have increasingly turned to the Internet to buy basic necessities like toothpaste.
SoulCycle, owned by billionaire Stephen Ross, has closed all of its gyms (21), although its website offers fitness classes at three outdoor locations, including the Tribeca rooftop.
Other popular chains that are closing a significant number of outlets include:
- Duane Reade / Walgreens: 70 out of 247 in New York.
- Starbucks: 49 of 351
- CNG: 51 of 99
- Subway: 30 of 287
- MAC: 25 of 34
- The Daily Bread: 14 of 37
- Victoria's Secret: 9 of 22
- Skechers: 8 of 15
- Old Navy: 6 of 23
- Shake Shack: 5 of 25
But all is not yet lost.
About 40 chains have added new locations, for example, Popeyes fast food has opened 11 new eateries.
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Bowles believes the food sector downturn is likely to be temporary, assuming large numbers of workers return to their offices when the pandemic subsides.
The closure could also provoke a new generation of business owners seeking to become franchisees of major brands.
“We're going to see a new wave of entrepreneurship,” Bowles said. "We can see some of the networks go to other parts of the city that haven't been hit as badly as Manhattan."
