By MELISSA NAEDER //
Service Merchandise, which is all e-commerce now but came to life as a unique 20th Century catalog showroom, was way ahead of its time.
The term “retail apocalypse” enters many conversations throughout the commercial real estate industry these days, and it’s no surprise: Traditional retail has taken some hard hits since the turn of the century.
The hardest, of course, is the emergence of e-commerce, surely a nail in brick-and-mortar’s coffin. The hammer was the pandemic, which quickly eroded even the most optimistic projections for traditional retail’s ability to navigate the e-commerce transformation.
That was especially true in New York City and other urban areas, where economic woes were complicated by the exodus of individuals to suburbs like Long Island. Great for home sales in the ’burbs, but a full-blown “retail apocalypse” back in town.
Melissa Naeder: Retail value.
But not everywhere. With so many looking to the suburbs as safe havens from the increased chaos of fast-paced urban living, the local demand for retail services – to satisfy both daily needs and post-pandemic desires for “normalcy” – is increasing.
In a happy turn of events on Long Island, retail brick-and-mortar stores are returning stronger than ever in many categories. Consumers now see brick-and-mortar retail as not only necessary and beneficial, but a crucial compliment to online shopping.
In recent years, we’ve seen a revival of several Long Island downtown districts – including Patchogue, Farmingdale, Babylon, Huntington and Bay Shore – making them more vibrant and attractive to both consumers and retail tenants.
This is a two-pronged socioeconomic solution: Not only does it help create more of a live/work/play region that keeps younger generations around, it creates opportunities for innovative new retail tenants – while increasing awareness of (and appreciation for) longstanding, nostalgic retail establishments like restaurants and theaters.
Some classic retailers have been forced to close their doors, but they’re being replaced by tenants that better suit the current demographic’s needs. For instance, former big-box Sears stores in Lake Grove and Garden City have transformed into much-needed healthcare facilities, giving underserved communities more healthcare options.
Pet project: Dogtopia has taken off, thanks to all those pandemic puppies.
Several former Long Island drug stores have also turned into medical facilities, as well as fitness centers. Wellness and fitness retail, in fact, is doing especially well, with many new fitness concepts making their way to the Island and the Salon Suites concept – offering a unique combination of one-stop beauty services, business networking and entrepreneurial opportunity – coming on strong.
Another innovative retail-space use is “doggie daycare,” such as Dogtopia (with so many people adopting dogs during the pandemic, the need for daytime dog-care services has skyrocketed). And many grocery stores have turned over, with discount grocers Aldi and Lidl both spreading across Long Island.
Yes, people have got to eat – so regional fast-food chain Five Guys is also making moves, now operating 14 Long Island locations with its 15th coming soon to Oceanside.
As stores continue to open back up post-pandemic, the continuing possibilities for Long Island retail space are exciting. Consumer needs continue to evolve, and innovative retail tenants – like Service Merchandise back in the day – are one of the things that help make Long Island home.
Melissa Naeder is senior director of brokerage and retail services at Cushman & Wakefield and a board member of the Commercial Industrial Brokers Society of Long Island.
