Madison Avenue shopping traffic has declined

Image: thorequities.com Bloomberg has reported that Madison Avenue’s shopping traffic has heavily declined. While many other elite shopping districts in Manhattan have seen a post-lockdown rebound in foot traffic, Madison Avenue from 57th to 72nd streets is at 71 percent of its 2019 levels as of August 8 according to Orbital Insight. On the other hand, Upper Fifth Avenue and SoHo have seen an increase in shoppers, with foot traffic exceeding pre-pandemic levels at some stores. All three areas are known for attracting luxury consumers who are seeking premium brands like Gucci, Hermès, Chanel, and Prada. These neighborhoods are also known for drawing in a high amount of tourist traffic. Madison Avenue was already suffering prior to pandemic due to consumers shift to online shopping, which was only accelerated by the pandemic. Prior to the pandemic, the area also lost its famed Barney’s New York flagship store after the company filed for bankruptcy and liquidated its stores. Madison Avenue now has Manhattan’s highest number of vacant retail spaces. One of the reason Madison Avenue has had trouble holding on to tenants is because rents there are so high, compared to SoHo which has been offering discounted retail space. If landlords don’t start making rent concessions and offerings in the area soon, Madison could be looking barren for a while.
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