Juicy Couture Closing One New York Store
Posted on July 11, 2009Juicy Couture is closing its Madison avenue store, citing high rents and falling sales. The flagship Juicy Couture store on 5th Avenue and 52nd Street, which continues to perform well, will be the main New York store now. The closure will be disappointing for local Juicy Couture fans, but the company says it was more of a neighborhood hit and apparently less of a tourist stop.
Juicy Couture president Edgar Huber told WWD, "People prefer the big store on Fifth Avenue, which is doing extremely well. The Madison location became a neighborhood store, not a high-traffic store. It was never extremely strong for us. It's important to have a store on Madison. It's prestigious, but $2 million [in rent] is too high. Our average transaction is not as high as our neighbors."
According to the Real Estate Board of New York, rents on Madison Avenue have declined 8%, going from $1,066 in 2008 to $979 per square foot. However, it's still a very pricey area. Huber also says the company signed the lease at the peak of a real estate boom in the city.
The Cut reports that spaces have been opening up on Madison Avenue. There are 49 spaces available on Madison, with 20 vacant locations. This could be a sign that commercial rents in the area may be ready for a fall. If prices drop then maybe more fashion retailers will return.