MilkShake Factory, Maroons Creamery and Hey Yogurt are among the many dessert shops in downtown Ridgewood, N.J., which is seeing a shift from retail to services.<\/p>\n
Thalia Juarez for NPR<\/p>\n
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Change sprawls constantly across the storefronts on the postcard streets of downtown Ridgewood, New Jersey.<\/p>\n
The big avenue, East Ridgewood, cuts across streets called Walnut, Chestnut and Oak, and then abuts the train station that connects this commuter suburb to New York City. It's a town where anything is reachable within five, 10 minutes of driving, and its center is the proverbial Main Street.<\/p>\n
"Ridgewood has always been known as the place to go shopping," says Joan Groome, who has lived here since 1968, when she opened a ski shop above a family-run store selling gifts and art.<\/p>\n
Over the years, Groome watched a wave of big-box chains sweep through Ridgewood and then a wave of banks. Local retail like hers strived and survived or went under; doors have shut on a beloved stationery store, a family-owned pharmacy, a hardware shop.<\/p>\n
Joan Groome (right), who runs the Ridgewood Chamber of Commerce, visits a local jewelry store on Ridgewood's main downtown avenue.<\/p>\n
Thalia Juarez for NPR<\/p>\n
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Now a new shift is reshaping this downtown, as it has many around the U.S.: Stores that sell things are giving way to shops that sell services \u2014 spas, gyms, restaurants.<\/p>\n
"We have now 11 barbershops in town," says Groome, now the executive director of the Ridgewood Chamber of Commerce. Around her, on just this one block, three ice cream caf\u00e9s have opened, with a milkshake shop opening soon.<\/p>\n
Last year marked the first time that the majority of U.S. retail space was leased to tenants selling services rather than goods, according to real estate data firm CoStar. This change is a response to changing spending habits, and it is shaking up malls, suburban shopping hubs and Main Streets nationwide.<\/p>\n
Like many shopping centers around the U.S., downtown Ridgewood has seen an influx of services and entertainment, including 11 barbershops, dozens of coffee shops, over a hundred restaurants, medical spas and fitness studios.<\/p>\n
Thalia Juarez for NPR<\/p>\n
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This year, in the 20 biggest metropolitan areas, CoStar data shows retail tenants declining for the third year in a row, while personal services and entertainment are ballooning: escape rooms and virtual golfing, medical spas and Pilates studios.<\/p>\n
"Over the very long term, consumers have switched a lot of spending from retail goods to services in terms of share of wallet," says John Mercer, who tracks the state of retail at the analytics firm Coresight Research. "We think that that kind of long-term pattern will continue."<\/p>\n
Pallavi Doddakashi (left) browses plants with the help of Carla Sabbagh (center), the manager of Sunroom Plants, and another shopper, Katherine Arsho Baharyan.<\/p>\n
Thalia Juarez for NPR<\/p>\n
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This shift was temporarily interrupted by the lockdowns of the coronavirus pandemic but has since roared back. And it's generally fueled by the wealthier spenders, though Mercer says surveys also suggest that some people choose to trade down to cheaper goods to redirect that saved money to services, for outings and experiences.<\/p>\n
Much of the change is driven by what's on trend: wellness, beauty, fitness. And, of course, online shopping plays a huge role: When any purchase is a click away, people who physically go out to shop are often looking for more \u2014 for fun, an activity.<\/p>\n