America’s grand rail halls are turning into luxury billboards on steel rails. Walk into Manhattan’s $4-billion Oculus and you’ll join thousands of people who sweep past Pandora, Boss, luxury watch displays, and marble floors every day—yet almost no one ducks into the stores.
Cheap PATH fares are the lure, but the real money lies upstairs where Westfield bought the retail rights for $600 million (and later another $800 million) to chase eyeballs, not receipts.
The logic is simple but staggering: One huge station can swallow the sales—or at least the advertising value—of dozens of street-corner shops. Grand Central needs $2.7 billion in repairs over the next three years, yet its commuter railroads are running billion-dollar deficits; luxury leases promise a revenue stream that tickets never could.
In other words, the future of American rail may hinge less on locomotives and more on whether commuters will impulse-shop a $200 rain parka on the way to track 17.
via The Hustle
Matt Coneybeare
Editor in Chief
Matt enjoys exploring the City's with his partner and son. He is an avid marathon runner, and spends most of his time eating, running, and working on cool stuff.
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