The Plaza shops around

Historic hotel fails to draw major retailers
By Matthew Lysiak

Special to amNew York

October 24, 2007

As the Plaza Hotel celebrated its 100-year anniversary with a surreal fireworks show and grandiose remembrances of the century that earned it its reputation as the brand name for Manhattan luxury living, the spirit of Eloise must have been dancing to the festivities.

But now there are few corks left to be popped and the much-hyped $400 million lobby-to-roof renovation that promises to redefine elegant living ‹ not to mention unprecedented costs ‹ is nearing completion. Eloise¹s family may find the top floor a bit pricey, but at least she will have a place to shop.

That¹s because the famed hotel¹s retail landscape is in for a big change. The luxury stores more suited to the Plaza brand name are nowhere to be found while some relatively anonymous merchants are moving in.

Call it over saturation in the luxury retail niche, according to one expert. ³The Plaza is faced with a really big challenge in trying to attract high-end retail because most of the brands they are looking for already have their stores a few blocks away,² said Leslie Price, editor of retail blog Racked.com. ³Now they are trying a different concept by getting lesser-known and up-and-coming brands.²

Price is talking about the big names that many associate with luxury, such as Gucci, Prada, Burberry and Hermes, which are notably absent. The Plaza is mum on their view of the overall retail picture, largely because there are still many pieces left to the puzzle.

More than half the 64 spaces remain available, but if the current trend holds as many expect it to, you won¹t see any tears from Eloise, at least according to Plaza historian Ward Morehouse III.

³In an odd sense, more affordable shopping is in keeping with what the Plaza was intended to be,² said Morehouse, author of Inside the Plaza. ³It came into existence to serve the average family, not the Trumps.²