The New Retail Thread

Nobody would disagree with this, but what should be done?

Banks face backlash as they bid for top sites
http://articles.boston.com/2012-02-20/business/31077480_1_bank-branch-td-bank-convenience-store/2

Capital One Bank ousted a women’s clothing shop from its Back Bay space and is trying to force out a popular Beacon Hill convenience store.

TD Bank is replacing a barbecue restaurant in Quincy, took over a bagel shop in Wayland, and could supplant an Irish bar near Faneuil Hall.

In Wellesley, at least four banks have claimed empty storefronts.

But the new branches have not always been enthusiastically welcomed. The reason: Disappointed residents were hoping for more restaurants and grocery stores instead of additional places to make deposits and withdrawals.

Banks may be important, but to many people they are boring.

“You can hear a collective sigh across town whenever a sign for a new bank branch goes up,’’ said Bob Brown, who has chronicled the Wellesley openings on his blog, The Swellesley Report. The new additions include Brookline Bank, First Republic Bank, First Commons Bank, and Wellesley Bank.

Across the region, financial institutions are gobbling up prime commercial spaces, edging out other merchants and sparking protests from businesses, neighbors, and local officials. Although many banks have been consolidating operations and closing some branches, they still covet high-visibility locations, especially in affluent neighborhoods.

And even banks care about curb appeal. A stone-cold lobby entrance has to work hard to compete with a boutique bakery’s window display or the aroma spilling from a coffee roaster’s door.

Peter Meade, director of the Boston Redevelopment Authority, said banks often fill empty spaces that could otherwise become eyesores. But in some cases, he said, they displace restaurants, shops, and other businesses by offering to pay higher rents.“The biggest problem is that local businesses simply can’t compete with the banks’ money,’’ Meade said. “Banks can come in and bigfoot a place so a local business doesn’t have a chance to compete.’’

Part of the backlash against bank-branch openings may have to do with how they are perceived, especially since the financial crisis. For many people, banks bring to mind foreclosures, taxpayer-funded bailouts, and costly fees.

The resistance has been especially stiff on Beacon Hill.

As many as 1,400 people signed a petition opposing Capital One’s plans to replace a convenience store on Charles Street, and nearly 200 packed a recent public meeting about the proposed opening.

Some complain the bank branch would be dark at night and most of the weekend, sapping energy from the block and making the street feel less safe. Others say they rely on the market for groceries and other items.

“The residents feel they’ve already got enough banks in the area,’’ said Suzanne Besser, executive director of the Beacon Hill Civic Neighborhood Association.
A Zoning Board of Appeals hearing on the bank’s plan is scheduled for Feb. 28.

The space became available after 7-Eleven sold the building to Linear Retail Properties of Burlington for $4.1 million and ended its franchise agreement with the store, since renamed Charles Street Market.

Linear promptly started searching for a higher-paying tenant, but Tracy Hollander, who owns the convenience store, hopes to stay put.

“The store has been part of the fabric of Beacon Hill for 30-plus years,’’ Hollander said. “It would be sad to see it go.’’

The landlord said he was surprised by the fuss. Joel Kadis, the Linear partner handling the building, said he signed a lease with a bank because he thought it would be more agreeable to neighbors than a bar or a restaurant with a liquor license.

“I try to be a responsible landlord,’’ Kadis said. “I don’t see how a bank is detrimental to the neighborhood.’’

Capital One said the new branch would offer jobs and other benefits.

“We have a longstanding history of giving back to the communities in which we operate and pride ourselves on being a good neighbor,’’ said a spokeswoman, Amanda Landers.

Overall, banks eliminated 1 percent of their branches nationwide over the past two years. But banks such as Capital One and TD Bank continue to add locations as they expand into new markets.

“In many ways, they are very similar to billboards,’’ said Ed O’Brien, research director with Mercator Advisory Group, a Maynard banking and payments research firm.

Capital One has signed a half-dozen leases in Boston, Brookline, and Newton and is searching for several more locations to help it break into the Boston market, said Matthew Curtin, a real estate broker for the Dartmouth Co. representing Capital One.

In the Back Bay, Capital One outbid retailer Anthropologie for its multilevel space on Boylston Street. The store has reopened on Newbury Street.

Banks often offer merchants incentives to voluntarily surrender their locations.

Finagle A Bagel, for instance, agreed to close its Wayland store and lease its property to TD Bank. The bakery also made a deal to cut short its lease at 129 Tremont St. in exchange for a payment from Capital One.

Alan Litchman, who owns Finagle with his wife, said the company was already in the process of reducing the number of locations when the banks made them attractive offers. Money aside, Litchman said, “It’s always bittersweet to close a store.’’

Such arrangements do not always work out.

Firefly’s barbecue restaurant chain agreed to give up its lease in Quincy if TD Bank won permission to open a branch on the site. But the permitting took longer than expected. In the meantime, many of Firefly’s patrons stopped going to the restaurant once word leaked out that it would be closing. The Quincy location wound up filing for bankruptcy protection.

“It ended up being a bad deal,’’ said Firefly’s owner, Steve Uliss, who has two other locations west of Boston.

TD Bank still wants to open a new branch in the Quincy location this year and hopes to open 15 branches in the Boston area in the next couple of years. It is also considering leasing a building near Faneuil Hall now occupied by a McDonald’s and the Purple Shamrock bar.

“We are looking for the best locations,’’ said Mark Crandall, regional president for TD Bank. “Visibility in the communities we serve is absolutely critical.’’
 
Make banks a separate use category in the zoning code from retail, so that no more can be built in retail districts.
 
I have been told Capital One is supposed to open their first area branch in Coolidge Corner, but they have been working on the location for a very long time considering it's just a bank.
 
Nobody would disagree with this, but what should be done?

Shep, Ron -- its real simple:

Banks are a special retail class interchangeable with book and record stores

So as the book and record stores close -- banks can move into their old locations

For example the Borders location at School and Washington -- an ideal location for a bank --- "what? -- it was a bank before it became a bookstore -- My point exactly"
 
Umm... banks should be going the way of the book and record stores. Banking should be done online. Too bad for the old ladies. They should learn how to use deposit ATMs. In the next decade, bank spaces and buildings shouldn't be larger than a hallway with 3 or 4 offices for private banking/CDs/etc.
 
Umm... banks should be going the way of the book and record stores. Banking should be done online. Too bad for the old ladies. They should learn how to use deposit ATMs.

Data -- even the hottest young chicks with their ipads occasionally want to sit and have someone explain to the them the mystery of banking -- before we get labeled as sexist -- the same holds true for young and old men as well

Note the above is not to say that their is any less demand for ATMs, on-line, telephone or even TV-based banking -- the public likes those conveniences -- But they don't offer the chance to talk face to face with a banker

Note for full disclosure purposes my wife works in the customer service side of a small local bank which has recently added a couple of branches
 
Sure, for mortgages and loans and such, but is there really a need for something as big as the Boston Five Building? That seems like an excessive amount of space for the number of people needed to staff a modern bank.
 
I think the article is right when it calls these retail locations in high foot-traffic areas "advertising billboards" ... spot on.

I have no problem if old ladies want to speak to an actual person about their loan. That's a great thing. But it should be done in a second-floor office space, not in a cubicle adjacent to a gleaming sparkling lobby area that occupies the ground floor of an entire Coolidge Corner building. Again, I'm not sure what can or should be done about this.
 
Banks are not going anywhere any time soon. Sure the number of them will decrease and their physical size may follow suit, but there is still a need for them.

Not every company offers direct deposit to their employees. If you need quarters for laundry of to feed a meter, a bank can give them to you. If you are having an issue with your debit or credit card, I have found that going into a bank branch is a heck of a lot easier and faster than calling in, or going online. If you are in charge of petty cash at your company, you need to cash the checks to replenish it.

The Bank of America in Coolidge Corner is always busy. I understand it's in a city, but it's still always busy regardless.




Has anyone else noticed what a sad looking stretch there now is in DTX between the old Barnes and Noble space, the recently vacated FYE space and there's another empty space next to it that has been empty for a while. Also, At&t is finally making their move down the street so that will also sit empty.
 
Hopefully that block will snap back if/when the Filene's project happens.

My guess is that the landlords don't want to get locked into a lease at depressed prices if they can charge full price after it opens. :/
 
The banks already have to go through the zoning board, so it doesn't seem as though there's a need to have a special classification, or am I missing something?

I agree, totally, banks are not the preferred neighbor. Go to the South End, go to Chelsea, NYC, and they're all you see. ATMs, Thai restaurants, and drug stores.

That Boston.com article is a bit one-sided, though. Capital One is trying to "force out" the Charles Street market? Far as I know, it's the landlord who is trying to get it in there, in order to maximize rent. Am I reading this wrong?

The landlords in the city are somewhat limited in their options, of course. Beacon Hill didn't want the 7-Eleven when it was first proposed, no? And, they are against DeLucas growing, at all. They wouldn't accept a restaurant - they were against Villa Mexico moving to a side street (although, it was a more-residential street). So, the options are few. Yes, BH has accepted a JP Licks, but it is replacing an existing restaurant, no? And, ice cream doesn't make any smell.

You could say there should be more dress and jewelry shops but recently some tenants have been pulling out, complaining they can't make the numbers work.

So, then what do you do?
 
Banks are not going anywhere any time soon. Sure the number of them will decrease and their physical size may follow suit, but there is still a need for them.

Mass --- I don't think that een the number is likely to decrease

sure the medium sized get bought by the bigger and the bigger by the really big often then foreign owners get involved (e.g. Citizens == Royal Bank of Scotland, TD Bank == Toronto Dominion Bank, Soverign == Banco Santander of Spain)

But that just leaves the small bank names available and lo and behold the name reapears

case in point is Leader Bank -- started in Lexington, grew, eventually had merger of equals with Boston Federal Savings (HQ on Fed St) -- grew more HQ moved to Burlington -- grew more -- then aquired by Portland ME based Bank North. Bank North in turn aquired by Toronto Dominion Bank -- now called TD Bank -- U.S. HQ (Portlnd, Me & Cherry Hills, NJ)

Meanwile there is a new Leader Bank that started up in Arlington in 2002 -- now has 4 branches and is starting to expand

It seems that creating banks is a profitable business as is adding branches

Lexington Center is now filling-up with banks (at least 12 so far) and a smattering of other things retail and restaurant

Bank of America 1761 Massachusetts Ave
Eastern Bank 73 Waltham St
Eagle Bank 1768 Massachusetts Ave
Citizens Bank 1776 Massachusetts Ave
Sovereign Bank 1822 Massachusetts Ave,
Eastern Bank 1833 Massachusetts Ave
Td Bank 1840 Massachusetts Ave
Brookline Bank 384 Waltham St,
Cambridge Savings Bank 1781 Massachusetts Ave
People's United Bank 46 Bedford St
Citibank 31 Waltham St,
Boston Private Bank & Trust Company 1666 Massachusetts Ave,

Recently a quite busy gasoline station a mile or so from Lexington Center closed and it is being reborn as a TD Bank branch and in a few other corners of Lexington there are a few more bank branches including 1 or two banks not represented in the above list
 
Walgreens? Not exactly my first choice, but could be worse...I guess.

Boston.com - February 28, 2012
Turning the page
Walgreens will convert former Borders bookstore in Downtown Crossing into an emporium with a wide range of merchandise

By Jenn Abelson
Globe Staff / February 28, 2012

Fresh hand-rolled sushi. A juice bar with made-to-order smoothies. A hair and nail salon.

It’s certainly not a typical drugstore. But these are among the amenities that Walgreens will offer in the former Borders space when it debuts a 24,000-square-foot store this fall in Downtown Crossing.

The Illinois drugstore chain will model the Boston location after two it recently opened in New York City and Chicago.

These massive emporiums feature sushi stations with chefs, juice markets with smoothies, eyebrow grooming bars, expanded natural and organic sections containing fresh fruits, vegetables, wraps, sandwiches, and salads made daily. The upscale shops also offer more traditional goods, such as prescription drugs, over-the-counter medicines, and household products.

“This is an opportunity to do something unique and different in such a high-profile location,’’ said Michael Polzin, a Walgreen Co. spokesman. “There are a lot of people walking by on the Freedom Trail, and it will be a great destination for people who live and work in the area and for out-of-town visitors.’’

Walgreens was one of dozens of retailers that had expressed interest in the property at School and Washington streets, across from the Old South Meeting House.

The site, which is just steps away from rival CVS, was vacated by Borders last year after the bookstore company filed for bankruptcy protection and liquidated the chain. Borders had occupied more than 41,000 square feet there since 1996; the grand building was originally home to the Boston Five Cents Savings Bank. Walgreens, which signed a 30-year lease, is taking over the first floor, the basement, and the mezzanine and is considering using space on the second floor.

A fitness club is one of a number of businesses eyeing about 16,500 square feet on that upper level, said several people briefed on the talks.

“We had hoped to draw a flagship retailer like Walgreens who would invest in this site. It’s unlike any pharmacy you’ve ever seen,’’ said Michael Murphy, executive director of Clarendon Group USA Inc., which owns the building. “Walgreens will bring an array of products that will address a lot of needs in the Downtown Crossing area.’’

A Walgreens flagship store is welcome news for the retail district, which has struggled for years since the redevelopment of the former Filene’s building, at One Franklin Street, stalled. Walgreens began talks for the Borders site months before Millennium Partners disclosed plans recently to take over the Filene’s project and move ahead on construction by next year. Downtown Crossing has suffered from persistent vacancies and the giant crater left by Filene’s in the middle of the neighborhood. Clarendon Group USA, which has 60 percent of its office space occupied at the School Street property, also has had a vacant storefront on nearby Washington Street.

City officials and business owners are hopeful that the arrival of Walgreens - and progress at the Filene’s site - will bring meaningful change to the shopping district.

“This store is a new, unique concept, and this signature Downtown Crossing site will be a great fit for a flagship Boston store,’’ said Mayor Thomas M. Menino. “It’s exciting to see another piece of the puzzle coming together as we build on the promise of Downtown Crossing.’’

Marshal Cohen, chief retail analyst with NPD Group, a market research firm in New York, said Downtown Crossing will benefit from the Walgreens because it will have long hours and offer a wide range of products. The first store of this type in New York, which operates under the Duane Reade brand at 40 Wall St., is open 24 hours, boasts a retro-style mahogany-polished shoe-shine area, and has a 20-foot official New York Stock Exchange in-store ticker.

“Think of it as a drugstore on steroids,’’ said Cohen, who has been to the Wall Street store. “It is more of a mini merchant, with everything from drugs to duds, from baby products to beach chairs.’’

Walgreens, the nation’s largest drugstore chain, has not decided on hours for the Downtown Crossing location, but the Chicago site operates from 6:30 a.m. to midnight during the week, Polzin said.

As in its other locations, Walgreens is planning a sleek open space with a European boutique feel, while maintaining the distinctive architectural details of the historic building, including decorative plaster ceilings, travertine walls, intricate brass radiator covers, trim details and doors, and columns.

“There are half a dozen if not more uses under one roof that meet the needs of every customer,’’ said Jeremy Grossman, an executive with CBRE/Grossman Retail Advisors, which exclusively represented the owners in the retail leasing of the property. “It’s just the start of possibilities and retail change in Downtown Crossing.’’

Jenn Abelson can be reached at abelson@globe.com. Follow her on Twitter @jennabelson.
© Copyright 2012 Globe Newspaper Company.
 
In before Rifleman comes in screaming about VISION for DOWNTOWN CROSSING.
 
Sounds like a Woolworths. I didn't know Walgreens was in that sort of business.
 
Can this intense competition among Walgreens, CVS, and Rite Aide really last? We're becoming so saturated with these places... I imagine we'll have some closing soon...
 
I was thinking that same thing. There has to be some consolidation coming soon. Curious to see who the winners win be.
 
Can this intense competition among Walgreens, CVS, and Rite Aide really last? We're becoming so saturated with these places... I imagine we'll have some closing soon...

All over this state there are CVS'es and Walgreens across the street from each other. Same with Shaw's and Stop and Shop. The MA market thrives off intense competition. I've had visitors from out of state on numerous occasions mention their surprise about how close rival chains operate here.

This Walgreens concept sounds really great. I'm quite excited to see a company opening a flagship store in Boston.
 
Borders moved some merchandise outdoors in good weather. I hope Walgreens has some creative ideas about how to use that plaza to beckon people into the store.

I had no idea that Walgreens was capable of building stores like the one described.

It won't fully address the grocery deficit downtown but it may help.
 
I can't wait to buy my St. Patrick's Day decorations there to freshen up the Famine statues. It will be very convenient.
 

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