Bloomberg has reported that Madison Avenue’s shopping traffic has heavily declined. According to Orbital Insight, Madison Avenue is now at 71% of its 2019 level. This contrasts with other Manhattan’s elite shopping areas.
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. These areas attract luxury shoppers who want premium brands such as Gucci, Hermes and Chanel. These areas are well-known for attracting a lot of tourists.
Madison Avenue was already suffering prior to pandemic due to consumers shift to online shopping, which was only accelerated by the pandemic. The area lost its iconic Barney’s New York flagship shop after the company filed bankruptcy and closed its stores. Madison Avenue has Manhattan’s largest number of vacant retail space.
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. Madison could look barren if landlords don’t make rent concessions in the area.
