Bed-Stuy Empty Stores Filling Up, But Recovery Still Lags: Study

BED-STUY, BROOKLYN — Dozens of empty storefronts on Bed-Stuy's main streets filled up last year, even as existing businesses struggled to rebound from the coronavirus pandemic, according to a new study.

As of last summer, 24 percent of the 879 storefronts on Bed-Stuy's major commercial corridors stood empty, a 7-percent drop from the staggering 31-percent vacancy rate at the start of the year, according to the study, which was recently released by the Bridge Street Development Corporation and the city's Small Business Services.

But even as the new businesses moved in, Bed-Stuy stores and restaurants were struggling to rebound from the coronavirus crisis last year, according to the study.

More than two-thirds of the businesses surveyed — 85 percent of which are minority or women-owned — said their sales decreased in the last year, the study found.

Nearly half of the businesses, 43 percent, said they were not able to pay their rent in full, despite many drawing on cash reserves, using personal savings or applying for grants and government help, the study showed.

"Where COVID-19 has diminished sales and reduced employment for many, others however have thrived thanks to the direct aid and support of Bed-Stuy’s many community-based organizations like Bridge Street Development Corporation," said Oma Holloway, Bridge Street's COO.

"Only through our continued support will Bed-Stuy’s small businesses be able to create and maintain a lasting impact on the rich cultural, spiritual, and recreational opportunities in this neighborhood."

The Bed-Stuy businesses are far from alone. A study from the Brooklyn Chamber of Commerce of found that the majority of the borough's small businesses were "still reeling" from the financial strain of the coronavirus pandemic in 2021, with a similar 69 percent reporting that sales either stayed the same or fell throughout the year.

The influx of new businesses in Bed-Stuy is also not an anomaly. Even in early 2021, leaders in Bed-Stuy were noticing a post-pandemic surge of new businesses.

Of the 879 businesses surveyed in June 2021, 34 percent had only been open for two years or less and another 24 percent had been open for 3 to 5 years, according to the study.

That is not to say that longtime businesses still don't hold a place in the neighborhood. Around 22 percent of the 879 businesses have been open for more than a decade, including 9 percent that have been around more than 21 years, the study found.

"Bed-Stuy contains a diverse mix of businesses, including retail stores, restaurants, hair salons, and professional services that reflect the area’s distinct culture," Holloway said. "Notably, many of these small businesses are owned by women or people of color, and many merchants have strong roots in the neighborhood."

The 2021 survey is one of several "commercial district needs assessments" Bridge Street is helping the city complete in Bed-Stuy. Surveys of businesses are done every six months, the organization said.

The studies are used to help figure out ways to improve the commercial corridors, most recently with the aim of making sure neighbors are motivated to shop local.

"In completing this CDNA, we’ve found there to be more than $2.26 billion of “leakage” –or loss— in consumer spending that’s going outside of the neighborhood," Holloway said. "This negatively affects the growth and success of these businesses."

Here's a look at more of the data:

What types of businesses does Bed-Stuy have?

Researchers found...

• 85 beauty, nail salons, barbershops
• 82 limited service restaurants
• 71 bodegas/delis
• 71 professional/medical services
• 56 full service restaurants and bars
• 43 clothing and jewelry stores
• 39 nonprofits, arts spaces, houses of worship and public administration
• 33 general merchandise stores
• 32 supermarkets and speciality food stores
• 27 pharmacies, health stores and gyms
• 24 hardware, home goods and furniture stores
• 20 electronic and cell phone stores
• 20 coffee shops and cafes
• 15 laundromats and dry cleaners
• 14 liquor stores
• <10 in other categories

Where are the vacancies?

• Bedford Ave: 30% of 119 total storefronts are vacant.
• Nostrand Ave: 21% of 133 total storefronts are vacant.
• Tompkins Ave: 19% of 70 total storefronts are vacant.
• Fulton Street: 20% of 369 total storefronts are vacant.
• Malcolm X Boulevard: 35% of 106 total storefronts are vacant.
• Dekalb Ave: 29% of 68 total storefronts are vacant.

What does Bed-Stuy need to attract more visitors?

Merchant answers...

• 59% said safety
• 58% said sanitation/street cleaning
• 58% said storefront improvements
• 55% said community events

Consumer answers...

• 54% said community events
• 53% said storefront improvements
• 52% said sanitation and street cleaning
• 38% said safety

How is Bed-Stay doing compared to other neighborhoods?

Between 2014 and 2021, Bed-Stuy sales have gone up 41 percent. In Brooklyn as a whole, sales only increased in that time period by 7 percent. Citywide, sales went up by 21 percent.