Barneys in Cobble Hill?

This article in Crain's New York caught my eye for a few reasons. (She's doing a list?)

1. The rise of "South Brooklyn"
Yeah, that's right. I love south Brooklyn. I'm not talking Gravesend, but south enough compared to where the typical non-Brooklynite will go and south enough compared to"North" Brooklyn--Williamsburg and Greenpoint. As every school semester passes I see more and more under 25s moving to Cobble Hill, Carroll Gardens, Gowanus, and South Park Slope. And new bars and businesses spring up with them.

But bottom line--there's money in these here parts. The average income is significantly higher here than in north brooklyn. After all, Billyburg and Bushwick hipsters aren't known for their excess income and before their population burst the neighborhood was (and still is) working class. But not so in Cobble Hill. Only a few years ago Smith St. was not as gentrified as it is now, but for some reason this area attracted professionals with professional salaries. (I think it was all the trees and the handsome Brownstones).

Based on numbers, opening shop in Cobble Hill makes more business sense. And that's probably why Urban Outfitters jumped at the chance a couple of years ago. (I worked for OU many moons ago, and while I didn't think they had the best policies when it came to their workers, I do have to say the company has sound business judgement. Coincidentally their stock is doing very well). Smaller upscale chains like Steven Alan also opened shop in the area.

Yes, it is a little weird that Barneys is opening in Brooklyn, but its new Dubai-based owner is eyeing expansion. I'm curious to see how it works out.


2. Retail Expansion During Fiscal Crisis
I'm already seeing many new small businesses popping up on the LES and there are less vacant store fronts (except on Ave. A--what's going on there? Many vacant storefronts). The small businesses that I'm seeing are more niche and bespoke than ever which I'm pleased about. Remember when boutiques actually carried products that were hard to find anywhere else? That's why you went to these places in the first place. So what happens when every women's boutique carries Phillip Lim and Alexander Wang and every men's boutique carries Comme de Garcon? And then Bloomingdale's begins to carry Robert Geller? And the The Gap does a collab with Phillip Lim? Your customer either gets bored or goes to Bloomingdales because they have a credit card with them. Yes, it's all great product, and I still want me a Comme wallet, but oversaturation is bad for business.

Sadly, oversaturation was much the fault of retailers. 2005-2007 were great years for shopping. Many young, American designers came up during this time: Vena Cava, Thakoon, Loefler Randall. There were plenty of stores that were looking to fill their racks with something new and edgy and it just so happened that many young companies were coming out with great product and there was a large enough customer base with extra money to spend. Supply and demand matched. But by 2008, those edgy designs were getting ripped off and you could get Loefler Randall look-a-like boots from Steve Madden for a fraction of the cost (of course, their not real Vachetta leather, but hey, you can save $500). It got a bit much and supply exceeded demand. And then the 2008 crisis happened and unfortuanletly some stores and some clothing labels didn't make it. 2009 became the year of the sample sale to get rid of overstock and to give businesses and designers a chance to recoup at least some costs.

But with every crisis, comes growth and the discovery of something new that will change everything. Apple and Microsoft were both companies founded during a financial crisis, and I'm excited because I believe we've reached the turning point.

The recession is technically over and unemployment did not rise in November. While it's not stellar news, it is an improvement from what we've been hearing. I don't think retail will return to the highs of 2007 numbers any time soon. Shoppers have changed their habits and priorities too much for that to happen now, but with a changing customer will come business owners who will cater to this new customer.

Seeing new stores open, new shop owners with faces bright with new ideas and potential, and new expansions of chains is good news. Now is the time. Better to be a leader in the growth that will eventually happen than a follower.