Retailers around the Hudson Valley region breathed a bit of a sigh of relief in January, as shoppers cashed in Christmas gift cards and took advantage of post-holiday sales.  Although many area stores reported that business was better than 2008, the year the recession began, Kathy Grannis, media relations manager for the National Retail Federation in Washington, D.C., said that sales increased 1.8 percent in 2008 and fell 2.5 percent in 2009.
Newburgh”™s proposed mega-mall, The Marketplace, has been stalled for months, although it received it final approvals in 2008. Like many other developers, many are in a holding pattern waiting for consumers to loosen their wallets.
“People are shopping more prudently, which is understandable,” said Kate Waage, marketing director for the Poughkeepsie Galleria. “After-Christmas sales really helped; overall, we did 2.5 percent better in 2009 than we did in 2008. It helps that we are the only large mall in Dutchess and in the area immediately surrounding us.”
One event that retailers can”™t control: the weather, which Waage said did impact the mall”™s profits, “but because there was an extra week between Thanksgiving and Christmas, we were able to recoup somewhat.” Currently, the 1.2 million square feet of retail space is totally leased out, “and that”™s a good thing,” Waage said.
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For other large malls, it was harder to gauge how they fared. Palisades Center”™s leasing manager Rich LeMond was not available for comment, but a site tour by HVBiz found some empty storefronts. The spot where Steve & Barry”™s leased a large amount of space is covered with plywood and painted and has remained empty since the company went out of business. Steve & Barry, whose discount college-wear soared to national acclaim, fizzled out as quickly as it rose.
Best Buy now takes up part of the space once leased to the former retailer.
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Galleria at Crystal Run in Orange County does not see as much mall traffic as it used to on weekends, but no surprise there: over a year ago, the mall instituted a policy that forbids anyone under 18 to be in the mall after 4 p.m. Friday through Sunday without an adult. The result, said one kiosk retailer, has been less traffic but “more serious shoppers.”Â
Pyramid Cos. owns Galleria and Crystal Run, the Palisades Center and the Poughkeepsie Galleria, while Simon Inc. owns Woodbury Common Premium Outlets in Central Valley.
Simon”™s policy has not been very forthcoming: it does not release sales statistics for the outlet or allow management staff to talk to the press ”“ but managers in the 220-store outlet, one of New York state”™s most popular shopping destinations, reported less than stellar sales in December and an uptick in January brought on by people cashing in gift cards and taking advantage of sales.
Rosalind Wells, National Retail Federation”™s chief economist, states on the company”™s website, “More economic indicators are turning positive.” According to the U.S. Department of Commerce, advance estimates of national retail and food service sales for December fell 0.3 percent from the prior month, while sales increased 5.4 percent compared with the same period in 2008.
The Commerce Department reports it is the second straight year-over-year gain after 14 consecutive months of declines, the longest such streak on record. Going forward, it expects to see continued improvement in year-over-year gains but predicts spending will remain restrained until consumers feel more confident about the housing and job markets.
For Main Street businesses, the struggle to fill empty storefronts and keep filled ones from vacating continues. During an interview with Verticon principals Alan and Irving Zuckerman, the mention of empty storefronts in the town of Monroe, Orange County”™s largest municipality, had both longtime builders and developers wincing. “It”™s really a shame,” said the Zuckermans, “and we”™re hoping our local business association will work to bring more business here to the town and village.”
