The face of downtown retail is undergoing a dramatic transformation. Traditional storefronts that once housed clothing and gift shops are now being replaced by gyms, salons, and restaurants. This shift is not just a local phenomenon but a nationwide trend that has gained momentum in recent years.
Last year marked a significant milestone when, for the first time, more retail space was allocated to service-oriented businesses rather than those selling physical goods. This change reflects a broader shift in consumer behavior and the evolving nature of downtown retail spaces.
Ridgewood, New Jersey: A Case Study in Retail Evolution
Ridgewood, New Jersey, serves as a microcosm of this national trend. This small, picturesque town, known for its charming downtown and proximity to New York City, has seen a significant influx of service-based businesses. Joan Groome, who runs the local chamber of commerce, has witnessed these changes firsthand.
Groome moved to Ridgewood in 1968 and has seen the town evolve through various phases, from the rise of big-box chains to the dominance of banks. However, the most recent shift has been the most dramatic. Today, Ridgewood boasts 11 barbershops, dozens of coffee shops, over a hundred restaurants, and a plethora of wellness centers, stretching studios, and Pilates studios. The town’s main streets are lined with these service-oriented businesses, creating a vibrant and dynamic retail environment.
The Data Behind the Shift
According to data from the real estate firm CoStar, this trend is not unique to Ridgewood. In the 20 biggest cities across the country, retail tenants are declining for the third year in a row, while personal services and entertainment venues are on the rise. John Mercer, who tracks retail trends at the analytics firm Coresight Research, attributes this shift to several factors.
Mercer explains that over the long term, consumers have increasingly allocated their spending towards services rather than physical goods. This trend is driven by wealthier shoppers who have more disposable income. Additionally, the rise of online shopping has changed the way people approach physical retail spaces. With everything available at their fingertips online, consumers are now seeking out physical spaces for experiences and activities rather than just making purchases.
The Impact on Traditional Retailers
This shift has had a mixed impact on traditional retailers. Some, like David Logan, the store manager of Bookends, a bookstore that has been in Ridgewood since the ’80s, have seen benefits. Logan notes that the influx of new service-based businesses has brought more foot traffic to his store. People often walk across the street from trendy bakeries and other establishments, drawn in by the vibrant atmosphere.
However, not all traditional retailers are faring as well. Gina Jeon, who runs Hot Jewelry Box, a shop filled with crystals, charms, and custom jewelry, expresses concerns about the changing retail landscape. She wonders if the proliferation of restaurants and service-based businesses enriches the town’s value or detracts from it. Jeon believes that beautiful, well-curated shops like hers can entice people to shop more, while an excess of restaurants may not have the same effect.
The Consumer Perspective
Consumers like Kate Ulrich appreciate the unique experiences offered by local shops. Ulrich, who grew up near Ridgewood, enjoys the personal touch and the ability to mix and match her own designs at Hot Jewelry Box. She also values the opportunity to stroll down the street, peering into various shops and enjoying the town’s vibrant atmosphere. This sense of community and the opportunity for unique experiences are what draw people to downtown retail spaces.
As downtown retail continues to evolve, the balance between service-based businesses and traditional retailers will be crucial. The success of towns like Ridgewood will depend on their ability to create a vibrant, engaging retail environment that caters to the diverse needs and preferences of consumers.
