Known as the metropolis that never sleeps, the individuals that inhabit New York City, be they locals or foreigners, most definitely take refuge when the equivalent weight of 500 Empire State Buildings showers upon it. April 15th marked the second wettest day in New York City since recordkeeping began in 1869; “by midnight, 7.46 inches had fallen in Central Park.” Despite this staggering number, my determination to hit the streets in one of the most famous cities for shopping wasn’t as easily dampened.

The first destination on the island of Manhattan was the legendary Fifth Avenue. Historically home to some of the worlds most renowned luxury brand names, shoppers will be dismayed to find that lavish stores such as Chanel and Louis Vuitton have since moved and been replaced by everyday brands like H&M and Gap. Though other brands like Tiffany’s remain as a permanent institution and reminder of the luxurious life, Fifth Avenue no longer boasts the same level of extravagance that it used to. Many of these stores now call 57th Street or Madison Avenue home, away from the hoards tourists that rampage stores without making purchases.

Self Serve Fashion
Fast fashion stores like Zara and H&M are pushing this season’s hottest item: dresses. Making a vengeful comeback after the boho-chic look, this summer is all about the one-piece item. A unique fusion of the fifties mod style with feminine flare, it’s the modern take on a classic item. From flirtatious flowing skirts to clean-cut silhouettes, they come in styles and lengths for everyone.

Unfortunately for these two stores, the clothing doesn’t sell itself. Most are forcing as much merchandise onto the floor to expose to the customer rather than providing them assistance to find it. Using military style arrangements — hanging clothing sideways rather than displaying the front — they require shoppers to search for, rather than automatically see, the perfect ensemble. With patterns playing an instrumental role in the upcoming season, military style arrangements are not the most visually flattering for the collection. Given the current weather situation, smart managers set aside space in the lobbies for shoppers to leave their soggy umbrellas, effectively freeing up searching hands, but there was very little service from any sales associate beyond that. Zara’s employees couldn’t be bothered to help anyone, and H&M was simply too large for the number of on-staff individuals to assist the traffic flowing through the store.

Surprisingly, the latest “M by Madonna” line at H&M wasn’t appealing to shoppers. Even though Madonna’s first tracksuit line with the company failed miserably, this collection is being claimed as one of the reasons for the remarkable surge of twenty-nine per cent in same-year sales . However, in this particular location on Fifth Avenue, shoppers blew right past it. Its less than lustrous location on the highest floor near the back could have been a key reason, but also prices of the pieces were much higher compared to the rest of the merchandise in the store. For example, a dress from the “M” line was upwards of seventy (US) dollars, whereas dresses in their standard collection hovered between thirty and forty. Special item of the week, which was currently another dress in a blazing pattern, was half of that at a bargain steal of fifteen dollars.

The Designer Bandwagon
All-American brands like Abercrombie & Fitch, Gap and J Crew are taking a more conservative stance on this year’s fashion. Making a return back to familiar territory, most of these stores are revisiting lines that brought them their former glory. Most notably, Gap has collaborated with 2006 CFDA/Vogue Fashion Fund winners and released a limited edition line of “white shirts”. Paralleling the move of many other brands teaming up with designers — H&M’s lines with Stella McCartney, Karl Lagerfeld, and Madonna, Target with Issac Mizrahi and Proenza Schouler — this move is expected to “buy the Gap some time so they can get their house back in order” . This line was released the day I was leaving New York, but it is a positive step that can enable the company to continue turning their fortunes around and maintaining increasing same-year sales in the next month.

In the meantime, these all-American stores appeared to be having a hard time converting shoppers into paying customers. Abercrombie’s dark and ominous store resembled a museum that kept customers in its lobby only for shelter against the harsh weather. Though a huge supporter of Gap, I could barely find a reason to keep interest in the store. Most of the merchandise in the three-storey building was discounted items that had been around much longer than it should’ve been. And as for J Crew, their collection was simply too small. They had much fewer lines but a plethora of colors to select from. Unless it was the best fit one had ever experienced, it’s unlikely that they were getting many multiple sales.

Back to Basics
After the so-called glitzy Fifth Avenue, other recommended shopping areas like Soho, Greenwich Village, and Broadway were covered. It was a take-two of the same stores and collections available on Fifth Avenue, except with a different vibe in the store depending on the community. While Fifth Avenue was heralded by an illusionary sense of luxury, Soho brought out the high rolling fashionistas and the Village incorporated more low-key, vintage trendsetters.

Overall, it had to have been a slow weekend for most stores. A combination of the low tourist season and record-breaking rainfall, New York City shoppers were few in numbers. Having gone with several other individuals, it was common sentiment that purchases worth their value in either quality or in style were hard to come by. The general population also appeared to agree, as scans on the streets had very few pedestrians with a single shopping bag in one hand and an umbrella in the other.

Whether or not stores will be able to continue the trend of increasing same-year sales next month will be contingent on the lines they release during the upcoming summer season. For some companies this means continuing to be fashion savvy and pushing the “it item” while for others it’ll be about revisiting the styles that made them famous to begin with. It’s all about business basics, and focusing on the core competencies that launched them into the spotlight to begin with.


The Canadian Value Investor © 2007