Filed under: Bad news, Products and services, Small business

A few days ago, I wrote a tiny post about Saks (NYSE: SKS) and Neiman Marcus, in which I suggested that stores that focus on high-end luxury items were apt to be the first victims in a recession. The reasoning for this is simple: when consumers have less money to spend, they are unlikely to waste it on high-priced prestige purchases. As Sharper Image sorts out the details of its closure, and luxury retailers try to figure out how to deal with the evaporation of their consumer base, small stores are starting to experience major problems.

On February 16, Wilson’s Leather announced that it intends to shut 160 of its 260 mall stores. Having worked at Wilson’s for a brief period in the early 1990’s, I have the ability to attest that this is definitely not the first time that the retailer has had problems; in fact, store closings are practically a stock-in-trade for the company. However, Wilson’s is merely highlighting what many analysts believe is going to become a trend among American businesses: the closure of small retailers.

Wilson’s, of course, has always been particularly vulnerable. As a specialty leather retailer, they only sell one type of item, and the popularity of that item is closely tied to the seasons. With the exception of motorcyclists and fetishists, most people aren’t particularly interested in buying a leather jacket in July. Moreover, Wilson’s stock is specifically targeted to middle-income consumers: sturdily constructed and priced at a discount, Wilson’s jackets are also somewhat boxy and not particularly sleek. Unfortunately, middle-income consumers are among those most directly affected by the rising costs of gas, food, and consumer products.

While Wilson’s might be among the first companies to feel the crunch of the recession (or, if you like, “reduced consumer confidence and, incidentally, reduced spending”), it will probably not be the last. Specialty stores and boutiques are probably looking at a tough year. “Mall” stores like Ann Taylor (NYSE: ANN), American Eagle (NYSE: AEO), Sephora, The Gap (NYSE: GPS), and PacSun (NASDAQ: PSUN) tend to pay premium prices for their spaces, have a rather limited range of stock, and charge more money for their products. All of this adds up to a vulnerable position when it comes to reduced consumer spending. Add in the fact that, ever since the late 1990’s, malls have been declining as centers of commerce, and you’ve got a recipe for disaster. In fact, some analysts are predicting that retail bankruptcies this year could reach the highest level since 1991.

As for the next domino, if the current trends in mall shopping and small business problems continue, I’d watch out for a major downturn among Mall property management companies.

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Filed under: Estates

In the summer it can take an awfully long time to get to the outer reaches of Cape Cod, Massachusetts but it is worth it. Today’s estate is a prime example of the reason that thousands flock to the Cape once the weather warms up. It is situated on a sheltered salt water inlet with access to Pleasant Bay. The four-bedroom home is on an acre of land and it has a new kitchen, a big living room with vaulted ceilings and a screened porch. One particularly charming detail is the boathouse at the water’s edge with a loft area and game room. . It is listed at $4.275 million, high-priced for a home with less than 4,000 square feet but you’re paying for the location in one of the most picturesque New England towns. Although the middle range of the Cape Cod market has dropped considerably, prices of the high end home still seem to be reaching for the stars.

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Filed under: Estates

Given today’s dangerous real estate market , it makes me a bit nervous to see a newly constructed house over 20,000 square feet hit the market. This one in Stony Point, New York is a real humdinger. It is luxury on a grand scale with monumental double-height rooms. It has full-house automated lighting ,security cameras and an audio/video Creston system. The main home includes a cherry wood library, office, billiard room, gym, wine cellar, 21-seat theater and a four-stop elevator. There’s also a 3800 square foot carriage home which is attached to the main house via covered breezeway and underground tunnel and a 2800 square-foot pool house giving the entire property ten bedrooms total. The 2.5 acre property also has a lighted 50×100 sport court and a heated custom pool with a spa. It is listed at $9.5 million.

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Filed under: Estates

You may never have heard of Kelowna, British Columbia but it’s one of the fastest growing cities in North America. The city on a Okanagan Lake offers beautiful scenery and a relatively mild climate. Today’s three-bedroom home is situated on a hill for panoramic views of the lake and the surrounding hills. The home was designed by Isabel Chen and sits on 1.19 acres. The modern home has an open floor plan and plenty of windows and sky lights. There’s a separate guest suite over the garage that has a private deck. There is geothermal heating and air conditioning. I like the look of the saltwater concrete pool and the wide wood decks. It’s not a wildly charming home but the view and the easy and clean space warm my heart. It is listed at $2.2 million Canadian.

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Filed under: Estates, Celebrity Shopping

From the NY Post’s Gimme Shelter:
–Kenneth Cole and his wife Maria Cuomo Cole, have just paid $14.5 million for a five-bedroom, five-bath prewar co-op apartment at One Sutton Place South.
–Real-estate investor/enthusiast Michael Hirtenstein has added even more space to his TriBeCa bachelor pad at One York taking it from a large 6,600 square feet to a gargantuan 11,000 square feet of interior space plus 6,000 square feet of exterior space.
–So far Andie McDowell, Christie Brinkley and Rosie O’Donnell have all checked out the nine remaining residences at 10 West End Ave.

From the NY Observer’s Manhattan Transfers:
–The former Guccione townhouse sold for just $49 million to hedge fund titan Philip Falcone. Breathtaking considering it was once listed, albeit briefly and foolishly for $99 million.
–TV home renovator Bob Vila spent $4 million on a townhouse in 2004. He has now renovated and is asking $11.5 million. The renovation was filmed for season 15 of the TV show Bob Vila’s Home Again. The house is now two duplexes plus a full floor apartment as well as rear half-floor apartments on the first and fourth floors, which Mr. Vila couldn’t touch because there are still rent-stabilized tenants there. The penthouse is being rented for the year at around $15,000 per month, and the duplex downstairs is rented at around $10,000. The listing is here.
–Est

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Filed under: Estates

I’m sure that any place for sale in a Trump building is well worth the money but $22 million for 5,425 square feet… wow! At Penthouse 86B in Trump World Tower you’ll find a ten room space which includes four bedrooms and five and a half baths. Did I mention the granite countertops, marble baths and maple herringbone floors? In the tallest residential building in the world, it is sure to afford outrageous views of the city. Plus, the amenities included such as parking, concierge, doorman, valet services, health club with all the perks, Megu Japanese restaurant, and The World Bar cocktail lounge. Its only been on the market a few days — and sure to be snatched up in no time.

[via Curbed]

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Filed under: Estates

Most homes in Montecito California seem a little grown-up as if you have to be of a certain age to care about the storied pleasures of this seaside enclave. Today’s home would be the perfect choice for someone in the enviable position of having both youth and a ton of money. Or maybe I’m just swayed by the comic panel art in one of the bedrooms. Either way, this home on Fernald Point is totally gorgeous. The contemporary seven-bedroom home sits right on the water and is made with many beautiful exotic woods including ip

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Filed under: Estates

An architect and urban designer, Rem Koolhaas’ concept of the “generic city” created years ago might finally get the opportunity to be constructed in Dubai as a 1.5 billion square foot project called Waterfront City. It will be like picking up a section of Manhattan and placing it on an artificial island just off the Persian Gulf, balancing elements of very special construction, such as the 44-story sphere, with rows of towering skyscrapers. This bold statement would establish Dubai as the center for urban experimentation and one of the world’s fastest growing metropolises. Working in a sphere would be a nice change of pace from the strict rigidity of a typical building — even though would you still have elevators?

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Filed under: Estates

When I saw that this one was up for sale, I was excited. When my family used to live on Cape Cod, I’ve often passed by this house on the way to the Hyannis Yacht Club. On sunny days I often saw a man painting on outside on the observation deck of the tower. This home is set at a bend in the road in Hyannisport and faces Nantucket Sound. The almost 8,000 square-foot home is on enviable piece of land with 300 feet of private beachfront. The home, which was built in 1910, is in need of a bit of a renovation but it’s a treat to see the artist’s works everywhere. The studio is messy, as all good studios should be, but it looks like great space. The home is listed at $8.95 million.

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Filed under: Estates

I don’t write too much about condos in Los Angeles but we’ve definitely got them. For the most part they don’t have the appeal of some New York condominiums when it comes to poshness and elaborate style but this one is pretty amazing. It’s the double penthouse that takes up half of the highest two floors at The Wilshire on Wilshire Blvd. The condo has a private foyer and a massive and ornate two-story living room with silk draperies, custom rock crystal chandeliers, hand-made carpets and sculpted moldings. The home has a beautiful bronze and iron staircase and balcony detail, a water filtration system, four fireplaces and remote control security monitors. The walnut family room has the look of a European pub with coffered ceilings and a granite bar. The media room has a 100-inch rear screen projection system and there’s a formal dining room and separate sitting room. There’s a private in-unit elevator which also goes to the upper floor where there’s a mahogany office, guest suite and a storage area that includes a hair salon and wrapping room, which can be converted into an additional bedroom. The master suite has an antique marble fireplace, blackout shades and soft pastels. The gentlemen’s bath and dressing room has a steam shower and the ladies’ bath has a spa and large closet. The building has 24-hour concierge service, 24-hour valet, gym facilities and swimming pool. This condo is listed at $11.5 million.

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