A Bradlees grows in Brooklyn; discounters also eye Manhattan, outer boroughs

Discount Store News, June 21, 1993 by Jill Lettich

Discounters Also Eye Manhattan, Outer Boroughs

NEW YORK - Bradlees, the Braintree, Mass.-based regional discounter, is the latest retailer to take a bite out of the Big Apple. The regional chain will expand its presence in the metropolitan area next year with its first store in New York City and additional stores on Long Island and in Northern New Jersey.

Despite its reputation as an upscale shopping haven that is home to Bloomingdale's and Saks Fifth Avenue, New York City is also home to millions of value-concious, discount store-receptive customers.

Off-pricer apparel chains and numerous specialty discount stores are already established within the five boroughs of New York City. Now, with sites available both in the heart of Manhattan and in the outer boroughs, full-line discount department stores may change the face of retailing here.

Bradlees ventured into New York after the demise of Alexander's - which for some time had been the only major discount chain within the city limits. Caldor and Kmart (both of which have had stores in the borough of Staten Island) spearheaded the New York invasion in earnest in 1991 when they each opened stores in the borough of Queens.

Bradlees will debut in neighboring Brooklyn next year.

"We previously announced our intention to open four to six new stores per year starting in 1994. This is the first installment on that program," said Barry Berman, chairman and ceo, Bradlees, adding that Bradlees "will continue to look for additional sites in the metropolitan New York area."

Bradlees opened its first New York area store in Yonkers, N.Y., in May. That unit, a former Alexander's site, was its first multi-level store.

Bradlees' New York City store - a two-floor, 130,000 sq. ft. unit - is scheduled to open in Brooklyn in 1994 in a housing, commercial and office complex under development.

With its New York City premiere, Bradlees is following on the heels of close competitor Caldor. In addition to its existing Queens unit, the Norwalk, Conn.-based Caldor will open two more stores in the Bronx and one in Queens during the third quarter of this year. All are former multi-level Alexander's units.

Bradlees and Caldor both bid for Alexander's sites last year. Caldor won six stores in the bidding war, but sold the Yonkers unit back to Bradlees.

Now it may only be a matter of time before discounters take Manhattan as well.

Except for Conway Stores, a local discount chain with six units in Manhattan and Brooklyn (and one set for another Alexander's Bronx unit) there is no discount department store currently in Manhattan.

But it was recently reported that both Bradlees and Kmart are looking at the old New York Coliseum in the heart of Manhattan as a possible store site. The retailers are two of nine companies bidding for the Coliseum.

Meanwhile, Alexander's flagship store in Manhattan may be turned into a multistore, upscale urban mall, according to Alexander's Chapter 11 reorganizatiuon plans.

The demise of Alexander's and of the former Zayre chain sometime ago has left a void in many urban markets. Some discounters are rethinking their stance on urban stores by getting involved in some redevelopment plans.

Bradlees' entry into a new urban development area in New York is one example of a new attitude.

Kmart is also looking at urban sites. In addition to having its eye on New York City, Kmart recent!y announced its participation m a redevelopment plan where a Kmart discount store would anchor an urban shopping area in a blighted section of Kansas City, Mo.

Beyond the urban core of New York City, the retail competition is also heating up throughout the New York metropolitan area, particularly in the suburbs of Long Island.

Kmart began its expansion into the area two years ago. Caldor also has units there.

Wal-Mart and Sam's are expected to cause a stir when they enter Westbury, Long Island, not far from the planned Bradlees unit.

Bradlees is also opening units in Bergen County and West Orange, N.J., other Manhattan bedroom communities.