Following Barneys' announcement in March that it plans to open its first store in Brooklyn's hot Cobble Hill neighborhood, other national high-end retailers -- including Swarovski Crystal, Anthropologie and The North Face -- are said to be looking to open locations in that New York City borough.
Barneys plans to open one of its smaller concept Barneys' Co-Op stores. The format runs around 8,000 square feet and targets a younger, hipper crowd than Barneys New York. Prices are said to be somewhat more reasonable than Barneys New York but far from cheap. Dresses can still cost north of $500 and jeans over $300.
An article in The New York Times said that while retailers with locations in Manhattan, such as American Apparel, Urban Outfitters and Trader Joe's, have opened outposts in the borough, Barney's Co-Op is aimed squarely at upscale shoppers and particularly paving the way for other premium stores.
"Brooklyn has the demographics to support this kind of retail, but until now, no national store was willing to take the chance," Joanne Podell, the executive director of retail services at Cushman & Wakefield, told the Times.
The Times noted that in Cobble Hill, apartment prices regularly top $1 million and the average household income is more than $109,000, according to the Census Bureau's 2008 American Community Survey. In comparison, the average household incomes on the Upper West Side and SoHo -- where two other Barneys Co-ops are located - are $177,000 and $181,000.
More than 100,000 people live within a mile of the new Barneys Co-Op, and numerous subway lines converge nearby providing accesses to thousands of office workers from downtown Brooklyn.
Asking rents in Cobble Hill are roughly 20 to 25 percent of what is available in prime Manhattan spots like SoHo.
"We are opening the Brooklyn store for the same reason we opened our location on the Upper West Side: it's where our customers are living, and they appreciate us coming to their neighborhoods," said Ms. Brown.
In a story that appeared when the store's opening was first announced, the New York Daily News found one 57-year old musician who called the Co-Op's arrival "more of the Manhattanization" of downtown Brooklyn.
But April Maddox, a 37 year-old piano teacher, said, "I don't think you'll find a single woman around here to complain about Barneys coming to town. Pretty soon, I'll be able to get all my shopping done in Brooklyn. A few more nice restaurants and I might swear off the city altogether."
While real estate brokers indicate increased interest in Cobble Hill as a high-end destination, one hurdle is a lack of spaces big enough for national retailers. Williamsburg, which has more retail options, is said to be less appealing because of its lack of density and access to mass transportation.
Discussion Questions: Will we soon see a broadening of the luxury store market in other cities, similar to what is happening in Brooklyn? What factors best determine whether a locale is suitable for targeting wealthy shoppers?