Area Retail

Loretta Gendville is building her own retail empire in her own Brooklyn neighborhood, reports Diane Cardwell in the New York Times (9/21/09). Within the space of just a few blocks of her home, Loretta has opened a yoga studio, day spa, children’s clothing shop and a toy store — all under the brand name, "Area." Loretta is not the only one: "Little empires of restaurants, bars, clothing stores and other establishments started by homegrown entrepreneurs have multiplied in this patch of Brownstone Brooklyn, sending up sprouts every few blocks."

Raymond Keating, chief economist of the Small Business and Entrepreneurship Council, says the idea of "opening related but slightly different outposts in close proximity has allowed owners to diversify and ‘tap into these customers in a variety of different ways’ without necessarily cannibalizing their existing trade. In addition, he said, diversification can help business owners survive in tough times, as gains in one shop offset declines in another." Loretta isn’t sure the idea would work as well elsewhere, though.

"In Brooklyn, people stay in their neighborhood — you have your one or two parks you go to and your coffee shops," she says. Her neighborhood also is home to affluent, educated types, while offering lots of small storefront space at affordable rates. However, Scott Stringer, the Manhattan borough president, would like to "spur similar kinds of economic development in his borough," because, he says, this type of local enterprise is better for the local economy than having national retailers. "The cluster retail model really works," he says.