Newbury Street experiences a Gap in retail lineup

by Sandra Miller

When Newbury Street’s Gap store closed its doors at the end of August, with just a couple of signs taped to the doors, many were left surprised, even mystified. How could The Gap close? It was like a McDonald’s closing. It just doesn’t happen. The Gap, like many retailers, is experiencing drops in sales due to the economy. The Newbury Street Store is just one of 115 to close this fiscal 2008, although the Gap will continue to open more than a 100 other Gaps nationwide. For Gap fans, it means having to go to Copley Place and elsewhere. For Newbury Street, many are left puzzled. “That one caught me by surprise,” said Susan Kelley, chief administrator of the Newbury Street League. “All of a sudden, I see a moving truck, and they’re gone in a day,” said Mitch Rosenfield, owner of the nearby The Hempest. Newbury Street was once a scruffy, eclectic business district that has reinvented itself more often than Madonna. But through the years and through changing storefronts, it still manages to offer something for every wallet. Still, did the Gap belong on Newbury Street anymore? No, say some, who noted that such iconic Newbury Street spots such as the TGI Fridays restaurant and once-hot bar moved to the suburbs. The Gap is located in the Prince Building, which includes a 36-unit condo development whose units range up to $700 per square foot. The building was formerly the old Prince School before it was renovated and storefronts were installed. Apparently, rents are going up, and the Prince Building is a prime chunk of real estate. Perhaps the Gap would have been more comfy on the funkier end of Newbury Street. “You have to be on the cutting edge,” said one Newbury Street businessman. “Buildings are selling for big bucks. The little hair salons and other businesses that made Newbury Street what it is are leaving, because they can’t afford it anymore. … It’s hurting a lot of people. A lot of European stores are moving in.” “Landlords are trying to get too much money here,” said Rosenfield, who mused that whatever the rent was, he was surprised something like the Gap couldn’t afford it. “It always seemed pretty busy in there,” he added. “I can’t say I’m all that sorry to see them go,” he added. “It would be nice to see something more diverse and colorful in the space.”

Changing places: Retail experts say storefronts don't stay empty for long by Sandra Miller

The Gap is the latest in a shuffle of area retailers reacting to rising rents and a lackluster economy. Louis of Boston decided not to renew its lease when it comes up in 2010. Its owner, Debi Greenberg, said her reason for wishing to move to a "trendier" location echoed a common sentiment: that Newbury Street was becoming just another mall. When it opened 20 years ago, Louis of Boston was said to open the street to a new level of luxury. Greenberg told the Boston Globe that stores along Newbury Street are all similar. "There isn't anything new anymore," she said. More likely, she didn't like the rents, which are now shooting into the $100- to $250-square-foot range. Some estimate the Louis of Boston space, a prime standalone 40,000 square-foot historic building with parking, could get $200 per square foot on the ground floor. One Newbury Street real estate professional figures it will attract a major anchor store, or a European-style high-end hotel. However, industry specialists say the economy isn't creating empty storefronts along Newbury Street. For every business that complains of high rents, another business is very willing to take its place. Chain stores such as Nike, Filene's Basement, H&M, Borders, and Victoria's Secret continue to move in, as are European retailers. Newbury Street's long list of luxury names still include Chanel, Donna Karan, Burberry, Cartier, Fendi, Gucci, Kate Spade, Bang & Olufsen, Valentino, Yves Saint-Laurent, Hermès, Versace, Prada, Marc Jacobs, and Ermenegildo Zegna, as well as more modern upscale upstarts like Johnny Cupcakes. But Newbury Street is no longer the sole luxury magnet, with more upscale presence in shopping centers along Boylston Street and even down the pike at the Natick Collection. French restaurant L' Espalier closed its 8 Gloucester St. digs and will be opening in the new Mandarin later this month. Meanwhile, Copley Place has Neiman Marcus, Tiffany, Louis Vuitton and Bally of Switzerland, but it will be losing Gucci to the Mandarin. The Mandarin has also been attracting upscale retailers, restaurants and services, such as yoga specialists Lululemon Athletica, Italian fine linens retailer Frette, and Sel de La Terre. When Armani moved off Newbury Street last year, the buzz ranged from worries about the decline of Newbury Street's cache', to sniffs about the decline of the label, to musings over whether men were really bothering with ties much anymore. The Tempest's Mitch Rosenfield misses Armani's café, which was across the street. "They tripled the rent," Rosenfield recalled. "Zara came in with some ridiculous offer." While Rosenfield notices an upward trend of rent increases over the 13 years he's been there, he remains upbeat. "You can't expect to get a cheap place here. The landlord is pretty reasonable. Some months are worse than others in this economy, but we wouldn't be here 13 years if we couldn't find a way to make some money."