Michael Stoler Report Newsletter The Stoler Report-New York's Business Report
This week join Michael Stoler on the television productions of New York Real Estate TV, LLC.
Monday, April 1st, Michael Stoler's guest on "Building New York-New York Life Stories" is Reverend A. R. Bernard, Christian Cultural Center, Part II
On Tuesday evening, April 2nd, the topic of the Stoler Report-New York' Business Report is "The Garment & Apparel Business-Growing & Thriving in New York City.
My guests on the broadcasts include Alex Garfield, Harriet Greenberg, Charles Mizrahi and J. Michael Stanley
The Stoler Report-New York's Business Report airs a total of 8 times a week on CUNY TV in New York City.
Every Monday morning you will receive the latest real estate article by Michael Stoler on the state of the market an information about the upcoming guests on the productions of New York Real Estate TV, LLC
Discount on line brokerage firms open retail offices in New York City
Growing up as a baby boomer, I remember a time when most of the Wall Street brokerage firms had branch offices throughout the five boroughs. Most of these firms, which included Dean Witter, Paine Weber, Shearson, Lehman Brothers have merged or no longer operate as retail stock brokerage firms.
Charles Schwab launched the world of the discount brokerage
firms in 1975. Today many of these on-line discount firms have retail locations throughout the city especially on Park Avenue.
The majority of retail locations on Park Avenue between East 45th Street to East 59th Street are the home of banking institutions and discount on line stock brokerage firms. In March, BankUnited open its branch at Fisher Brothers office building at 299 Park Avenue, just a block away from the corporate campus and branches of JP Morgan Chase.
Directly across the Street, on the first floor of 300 Park Avenue, is the home of Signature Bank, a recently renovated Charles Schwab,and E*Trade. Across the street at 280 Park Avenue, Scottrade has a location on the corner of the building (which has temporarily relocated to the has a location on the 24th Floor of the building) hich is currently undergoing major renovations.
At 350 Park Avenue, Fidelity Investments is located on the ground floor just a few feet away from a branch of Valley National Bank.
At the former home of the Park Avenue showroom of Mercedes Benz Manhattan at 430 Park Avenue, corner of East 55th Street, TD Ameritrade will be opening a new branch. . The company currently occupies space at 301 Park Avenue in the Waldorf Astoria Hotel, at the corner of East 50th Street.
In March, TD Ameritrade signed a long-term lease to occupy, 9,509 square feet of space on the ground floor and lower level of 100 Broadway, at the corner of Broadway and Pine Street.
Coffee, Coffee & More Coffee-Top of the list of the fastest growing consumer goods
More and more coffee shops are opening in New York City and around the nation. McDonalds is active in selling coffee and earlier this year, Burger King announced that it would begin ramping up its sale of coffee products offering Starbuck's, other brand Seattle Best at its locations.
While the price of a cup of java at Mickey D's might be as low as a buck, Starbucks and other chains are offering higher priced exotic brands and blends. Millions of consumers are purchasing single serve machines and retailers are experimenting with new products for the active consumer.
The consumer desire to consumer coffee has resulted in Coffee toping the list of the 10 fastest growing consumer goods categories in the 2012 Retailing Today's annual analysis of the top 100 retailers and categories. Coffee sales jumped 19.4% during the 52 week period ending August 4, 102, with other notable from the top ten list including yogurt (ranking in 5th position, rising 9.5%) women's fragrances (7th position, plus 8.6%), vitamins (8th position, up 8.5%) and liquor (in 9th position, up 8.4%) Pet care took the tenth spot, up 8.1%.
While consumers are spending big bucks to purchase coffee, the recession continued to have an effect on consumer spending.
The top 10 retailers by 2011, revenue, indicate consumers' eagerness to find value. Ranking in first in sales is Wal-Mart at $444 billion, with Kroger, the nation's largest operator of conventional grocery stores, reaching $90.4 billion in second position. Warehouse club Costco was in third place with $87 billion, followed by drugstore chain Walgreens ($72 billion), The Home Depot ($70 billion), Target Corp ($69.9 billion), CVS Caremark ($59.6 billion), Best Buy ($50.7 billion), Lowe's ($50.2 billion) Amazon.com ($48.1 billion) and Safeway ($43.6 billion)
Consumers continue to splurge on small luxuries
Despite economic uncertainty, consumers are still spending on small luxuries, according to a research report featured in the National Retail Federation, "Stores Magazine"
The recently issued survey conducted by BIGinsight.com, examines products and services that consumers feel are "untouchable" and "expendable" and tracks the past five years of this sentiment surrounding their purchase behavior.
The survey found that items and services such as on-demand video streaming and upgraded mobile devices have in recent years maintained staying power. On the other hand, as consumers increasingly look for ways to cut back, they are more inclined to give up high-end jewelry, maid services and magazine subscriptions.
"Economic ups and downs have an irrefutable impact on Americans' spending habits that extends well beyond gas and groceries and over the past five years many consumers have had to rein in spending as fiscal woes plagued budgets," said Susan Reda, editor of Stores. "The most recent findings suggest that consumers are loosening the grip they've had on their wallets - though admittedly just slightly. What's also evident is that consumers, after several years of practice, are adapting to the 'new normal' of an uncertain economy."
Some services and products that have mostly remained "untouchable" over the past five years include:
Internet Service 80.1%
Mobile/cell phone service (basic) 61.4%
Cable/satellite TV (basic) 57.0%
Discount Shopping for apparel 41.0%
Hair cut/color 40.3%
On average, 53.9 percent of adults said they cut back on some items and services in 2012, down from more than three-quarters (76.4 percent) who said they'd done so in 2011. And, as a possible sign that consumers have adjusted to budgetary constraints, almost every category saw a year-over-year decrease in the number of people who plan to cut back on items and services:
Daily Cup of Gourmet Coffee 28.8%
Luxury handbag 24.6%
New pair of jeans 45.0%
Casual sit down restaurant 49.1%
Department store for shopping for apparel 39.6%
New pair of shoes 43.1%
Convenience stores growing by leaps and bounds
A convenience store refers to a small sized retail store, which provides limited number of grocery products as well, as well as consumable products, which most people are likely to want.
TDLinx defines a convenience store as a store that includes a broad merchandising mix, extended hours of operation and a minimum of 500 SKUs. Fueling stations with small kiosk stores do not meet the official definition of a c-store and thus are not reflected in TDLinx's store count figures.
In the not too distant past, every convenience store looked about the same -- 2,400 square feet of packaged consumer items. Today, companies in the industry are approaching markets with different types of stores and different product offerings.
At this moment, convenience stores represent 34.8 percent of all retail outlets in the United States with their ranks outnumbering drugstores, supermarkets and dollar stores combined. For every one drugstore, there are 3.7 convenience stores. For every one supermarket, there are 4.3 convenience stores. And for every one dollar store, there are 6.2-convenience -stores. Some might say convenience stores are taking over.
This year's Top 20 Growth Chains, by means of acquisitions, new store construction -- or in the case of the oil companies, extending their branded wholesale network -- added more than 1,700 stores to their portfolios last year. Once again, convenience giant 7-Eleven Inc. led the pack, adding a net 961 locations for a 14.4-percent increase in its U.S. store base.
The number one Convenience store is 7 Eleven, which started last year with 6,680 stores and grew 14.4%, adding 961 stores. Last year, 7-Eleven had a record growth year, adding at least 630 new U.S. and Canada stores. Approximately 60% of the company's growth in the United States last year result from several multi-store acquisitions.
Last year it was reported that at least 114, 7-11 stores are set to open in Manhattan, more than six times the number already located here. The company planned to open at least 14 stores in the boroughs last year, and 20 more each year from 2013 to 2017