Many cities around the world are experiencing the same phenomenon where the face of the neighborhood, the local shopping street, slowly change to a more homogenous appearance due to growing chain stores. Such changes prime the neighborhood for “gentrification by hipster” as new art galleries, boutiques, and cafes, the ABC’s of gentrification, spring up. Eventually, as evidently seen in many of the current neighborhoods today, immigrants from various parts of the world attract to these neighborhoods to start up business such as retail and restaurants in search of more affordable rent and potential customers, instead of starting up in their ethnic neighborhoods. These three factors begin to reshape the local shopping streets in many global cities.
New York City, in particular, is an excellent example because unlike other cities such as Shanghai which has been experiencing gentrification due to local and national migration, it attracts millions of immigrants from various parts of the globe and this international migration seems to create super-diverse neighborhoods in many parts of NYC. Local shopping streets of NYC began to grow as numerous “mom and pop” retails have established since late 19th century, beginning with the Germans and then Jews that gradually settled in until the 1980s. There used to many authentic local retail stores on Orchard street, but many have long disappeared due to rising rent costs. One solution to sustain small business would be giving business Lease Renegotiation Rights. One of the main causes for closures of many small businesses is the failure of the commercial lease renewal process. The grassroots advocacy organization such as Take Back NYC is actively supporting the bill, Small Business Jobs Survival Act. Under the bill, businesses have the right to negotiate terms when it comes to a renewal of their lease, and it also guarantees a minimum 10- year lease so that the businesses can prosper by expanding their business without worrying about the next lease renewal.
Decades ago, these local shopping streets were bustling with foot traffic which helped local stores sell many products, however with the advent of technology, old stores are losing customers to new stores that strategically have online stores. I think that bringing back the foot traffic will help improve these businesses. Such event can occur if the street can host a street party or a fair where they hold events and let the customers experience the lively feel of the authentic local shopping streets. We can perhaps also help old businesses catch up to current advances in technology. They don’t necessarily need to provide online shopping, but they should at least create websites that lay out their items, feature deals and sales, and present short business histories.
In the article, Small Business Survival: Government Gridlock Stymies Solutions, the author discusses several potential solutions to help small businesses thrive. One method that I think would be great is setting a tax rate. By doing so, incentives will be given away to landlords who provide rent relief to small businesses. If the owners agree to preserve affordable housing and to protect independent businesses, incentives like setting a tax rate will be provided. Although it is a complicated process and Mayor de Blasio has said the proposal will “not happen quickly or easily,” it will greatly benefit those landlords who wish to protect mom-and-pop stores because Michael Forrest, a local property owner, mentioned that there is “zero support for owners of tenements to preserve existing affordable housing. “
Interview Questions:
- Who are your customers and where do they come from?
- How has the neighborhood around your store changed ever since you began?
- Do you incorporate technology like websites to your business? If not, are you willing to?
Very good integration of reading and practical thinking, Jonathan! My only reservation: if you look carefully at the video about Orchard St., you’ll see that the young people who come to the annual street fair known as Lower East Side Day like to eat the food of the new, trendy restaurants but they ignore the old stores that remain on the street. Changing tastes???