What is the future of Palm Beach retail? Stores close during the pandemic – Palm Beach Daily News

Carla Trivino|Palm Beach Daily News

Long considered a safe haven from the outside world, Palm Beach has not been spared by the coronavirus. As the health pandemic continues to wreak havoc on several industries around the globe, the island's shopping districts have not been immune to the virus' consequences.

While most island businesses depend on the high seasons earnings, the mandatory closure of non-essential businesses in early March put a hamper on the town's most profitable month. Many of them tried tofocuson e-commerce or virtual experiences, but for those not having anonline presence, sales suffered.Ahandful refused to close.

"Spring was a wash of a season and we figured that out quickly," Beth Buccini, owner of women's clothing shop Kirna Zabete, said. "Business is completely down."

Buccini quickly adapted her business by offering curbside pickup and virtual styling services during the pandemic. She also refocused her store's merchandise by creating her own collectionto reflect her clients' new lifestyle (i.e. fewer ball gowns and more cashmere sweaters).

While many survived, the mandatory closure, loss of revenue, continued expenses such as rent and the added cost of operating once allowed to re-open proved disastrous, forcing some businesses to make their temporary closure permanent.

We heard there are 23 vacancies on Worth Avenue and six at The Royal Poinciana Plaza, said Francis Scire, a senior vice president and head of leasing, marketing and brand management at OConnor Capital Partners.

Scire has more than 25 years of experience in the retail real estate business, where his large focus is the luxury market. He also spearheaded The Royal Poinciana Plazas leasing during its 2017 reopening as the vice president of leasing at WS Development, where he also focused on merchandising and redevelopment. His current firm has commercial space available for rent on Royal Palm Way and The Esplanade.

Since March, hes watched the real estate market boom with Northeastern clients looking to buy or rent in Palm Beach during the pandemic. With it, he said, came an uptick in office space.

People buying these residences want to have an outpost for their offices, Scire said.

Given the recentdemand in office space, he said, The Esplanades second-floor vacant spaces may be transformed into offices. But the same demand has not translated into retail space.

A recent walk through the islands shopping districts tallied more than 25stores available for lease. Since March, 70 local business tax receipts, formerly known as occupational licenses, did not file for renewal, according to the towns Clerk Office.

"We had to close,it was very slow with pandemic and everything," Silvia Ispas, owner of Olivia Preckel, said. The Via Amore store did not file for a license renewal, but that does not mean she will not be operating nextseason. When her lease ended a month after the mandatory closures, she decided to wait to reapply.

"Iknow there's like 20 available spaces on the island, so I'm waiting to see if there's a better space for me, but in November."

The towns Supervisor of Business Tax Receipts Debby Moody suspects other business owners may be following Ispas' lead.

Theyre opting to not pay the tax and reapply when they reopen again. When we get back to normalcy, well see an influx of licenses, Moody said.

Some businesses relocated, such as Sharis Place, which moved across the street from its former location to 334 Worth Ave, Charlotte Kellogg, whichmoved to 228 Worth Ave., and Woody Michleb Beauty Salon, which joined forces and relocated to Donna Kelly Blush Brow Blowdry at The Esplanade. Others such as Milou of Palm Beach closed permanently.

Permanent closures did not discriminate. Luxury conglomerate Neiman Marcus is closing its Worth Avenue store Sept. 12. Thenewly openedshop Lili Bermudas handcrafted perfumes lasted less than one season on the island. And decades-long family-owned businessRapunzels Closetcloses permanently Sept. 30.

Other stores closing permanently this year includeThe Grand Tour, Joey Wolffer, LaunchPad,COMO Home & Design, Mystique of Palm Beach, Michael Kors, Jimmy Choo, Socapri and Brooks Brothers.

Some stores saw the pandemic as a sign to close while things were good.

Such was the case with Lili Bermuda, the town's only perfumery that opened last December.Perfumer and owner Isabelle Ramsay-Brackstonewas an investment banker and accountant whose financial skills helped build her company and expand to Palm Beach. Her Bermuda store was subsidizing much of the expansion, but when the pandemic affected all her locations, she had to close her shop.

The Federal Reserves regular survey of its nationwide business contacts shed light on the struggle some industries are facing. The August 2020"Beige Book" report showed that while vehicle sales, tourism and retail had been boosting consumer spending, many districts noted a slowing pace of growth in these areas, and total spending was still far below pre-pandemic levels. A bright spot, the report said, was the growth in residential construction and residential real estate sales, but commercial construction was down widely, and commercial real estate remained in contraction.

During the pandemic, many of the retailers' struggle was with their landlords who wouldn't budge on rent or compromise with tenants.

"I'm hoping the landlords owning vacancies on Worth Avenue are as open as we are to creating opportunitiesfor new tenants," Scire said.

Laurel Baker, chief executive officerof the Palm Beach Chamber of Commerce, concurred. She believes the town and landlords can work together to open new businesses and help them stay open.

"Its sad," Baker said when she heard news of Rapunzel's Closet closing. "South County Road has enough empty storefronts. Worth Avenue is even worse. And its our hope that the town will work with the landlords across the board to accommodate people that want to start a business and have been thrown off by the pandemic.

By this time of year, most stores that relocated within the island are in their new locations and new businesses are usually set up or in the process of opening, but experts have noticed a rather sluggish start. But it doesn't mean there isn't movement.

According to the town's clerk office records, 37 businesseshave filed for a business tax receipt since March 20. Among them are Worth Avenues latest additions such aswomens clothing store Ala von Auersperg at 312 Worth Ave., private spa Palm Beach Facials at 205 Worth Ave.and womens clothing shop Valentina Kova, which moved from The Royal Poinciana Plaza to 243 Worth Ave. Also,FeragamoUSA Inc. was recently approved for a new tenant,Faidra Hanna & Co., at 210 Worth Ave. during the Aug. 27 Architectural Commission meeting.

"Palm Beach is considered a safe place, a haven," Scire said."Weve seen a bounce back in sales for luxury tenants. Its not as strong as it was prior to COVID but its significant. I think it will take some time and I'm hopeful for the upcoming season."

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What is the future of Palm Beach retail? Stores close during the pandemic - Palm Beach Daily News