AT&T, Verizon Wireless plan new stores in New York City
Verizon Wireless and AT&T plan to open at least seven new storefronts in the city in 2009. (RJ Mickelson)
By Annie Lok
Special to amNewYork
Benefiting from cheaper rents and growing demand for trendy smartphones, wireless providers AT&T and Verizon plan to expand their city retail presence in 2009.
As banks stop grabbing up retail space and other businesses close, landlords are eager to strike deals with large national companies that have reliable credit, said Robert Gibson, executive director of retail at real estate company Cushman & Wakefield.
“Wireless carriers are logical players to come in,” he said.
AT&T said it plans to open seven company-owned stores this year, in addition to the 55 it already has. Verizon also said it will grow its roster of about 25 shops by at least seven.
T-Mobile said it plans to open stores here, but did not provide a number. Sprint said it did not plan new stores for 2009.
AT&T has set its sights on prime locations such as midtown, the Lower East Side and the Upper East Side, and last month it opened a store on the Upper West Side.
Verizon’s strategy relies on what the company called “under-penetrated” areas, such as Washington Heights and Staten Island.
Wireless carriers should benefit from the current rental market, as rates drop and activity slows.
“Landlords are taking a hard look at deals,” said Joseph Isa, a broker at Winick Realty Group.
AT&T and Verizon plan new storefronts in an effort to pinch customers from eachother and weaker competitors, such as T-Mobile and Sprint, according to Ken Hyers, an analyst at Technology Business Research, a group that tracks the telecom industry. They also want to tap relatively affluent New Yorkers.
“The decision to open additional stores in New York is a strategic one to spend their marketing dollars in the areas where they’re most likely to get the best-quality customers,” Hyers wrote in an e-mail.
