Center City, Discount Heaven

Look around Center City’s retail scene, and what do you see? You’re likely to notice plenty of “discount” retailers like H&M, Century 21, Marshall’s, and Nordstrom Rack. More may be coming soon: Neiman Marcus’ Last Call and Saks’ Off 5th are said to be interested in moving in. You’ll soon see a spate of outlets available at Fashion Outlets of Philadelphia. Clearly, “inexpensive” is the name of the game when it comes to what Center City has on offer.

Center City has no shortage of discount shopping opportunities, but will it ever build a designer presence?

But why is this? And why haven’t more designers moved in on the heart of Philadelphia, when they flock to King of Prussia? These are the questions that were asked by a recent article on BizJournals.com.

When the Fashion Outlets were in the conceptual stage, Pennsylvania Real Estate Investment Trust (PREIT) CEO Joseph H. Coradino approached designer anchors like Nordstrom and Bloomingdale’s to see if they were interested in opening a location in what he then envisioned as a high-end shopper’s paradise. Their response was tepid. Was this proof that Center City doesn’t have what it takes to attract a designer tenant? Laurence L. Steinberg, a Center City retail expert with CBRE Inc. who was quoted in the article, says that the answer is yes.

He blames Center City’s lack of an environment supportive to high-end shopping on the area’s proximity to other shopping meccas. Those in search of couture and designer accessories can either hop on the train to New York or take their cars over to King of Prussia or Cherry Hill, where designer shopping has an abundance. Steinberg points out that luxury brands like to congregate near one another, and that other cities have done a better job building up a designer presence.