The original businesses in Harlem have always been small community stores opened by locals. The majority of the businesses in the neighborhood have been 99-cent stores, bodegas, and other small family businesses. Now, many of these independently owned businesses are having blowout sales because they are soon to be closed.
Due to the change of Harlem’s demographics, there is an influx of fancy boutiques, coffee shops, bars, and “hip” restaurants. Chain businesses are also moving in, including Red Lobster and Whole Foods. Although these new businesses open opportunities and “bring economic stimulus to the economy”, it also means taking away from the already decreasing number of small stores. However, seeing these opportunities to open up retail stores is enticing because there are now customers who can afford to go there on a daily or weekly basis, depending on the type of business.
Not too long ago, there was a rumor about WalMart opening up a new location on 125th Street. This spurred a reaction from the Harlem residents, who protested that WalMart will be shutting down any businesses that are left. Although having a WalMart in the area can help in terms of easily being able to buy fresh groceries, it will shut down other supermarkets run by Harlem residents which will essentially take away many more jobs than the number of positions that will be opening.
Other big-box stores like WalMart that have already made a move into Harlem have already caused an impact on other businesses. For example, Target, Best Buy, Bob’s Furniture, Marshalls, and Costco are all in the East River Plaza. Customers who previously shopped at the mom-and-pops shops are now drawn to these large retailers, thus, decreasing the sales of the small shops. A few particular stores were Romana 99 Cents, which decreased 20% in sales, and Casa Furniture, which lost almost 50%.
The opening of new stores does not only affect the business owners in the area, but it also affects the dynamics of real estate and property taxes. One store owner says that the taxes of his building increased by almost 40%, which is inevitable for any business.
As more large retailers continue to move into the neighborhood, more and more families will continue to move in as well because of the conveniency. If the real estate is affordable, getting to other parts of Manhattan is easily accessible, and the cost of living is 16.2% lower than the average of New York, why not settle here instead?
