Would The Last Boutique on Oak Street Please Turn Off The Lights?

Another Oak Street boutique is taking advantage of the crummy economy to re-tool.

The Yves Saint Laurent store at 51 East Oak Street closed last Friday (January 23, 2010).  Word is that the interior is being completely renovated.  The new design is based on plans from Paris and is intended to upgrade the Chicago location to flagship status.

When will that be?  At this time it's anyone's guess.  Estimates are running two to three months.

Also closed to renovation is the Kate Spade store across the street at 56 East Oak.  It is expected to reopen by the end of the month.

For those of you keeping score at home, the following spaces are closed on Oak Street:

• 25 East Oak Street (Formerly Barneys, soon to be Hermes)
• 51 East Oak Street (YSL, reopening in a few months)
• 56 East Oak Street (Kate Space, reopening sooner)
• 58 East Oak Street (The dead Esquire Theater)
• 68 East Oak Street (Formerly Citibank)
• 72 East Oak Street (Formerly G'Bani)
• 112 East Oak Street (Soon to be Marilyn Miglin)

A block over, 52 East Walton Street is now empty.  It was Sur La Table, and there was word that some kind of bakery or cupcake shop or something was looking at the space, but the signs on the windows state the space is still available, so it doesn't look like that's going to happen.

The good news is that 102 East Oak Street is no longer shuttered.  It's now the home of Colletti.  It used to be Atlas Galleries.

How can shops like YSL and Spade afford to shutter their doors when consumer spending is down?  The logic is that it's better to close when spending is down than when spending is high.

Anyone who follows the retail press knows that high-end shoppers are mostly sticking to New York, London, Dubai (yes, still Dubai), and the major Asian markets these days.

We keep hearing from people who work in Chicago's retail sector that the few tourists who choose to make Chicago their destination continue to balk at the city's high sales tax.  By one estimate, half of the high-end north side shoppers who inquire about the sales tax end up walking out without buying anything.

It's not that they can't afford 10.25%, it's just that no one likes getting gouged.  And those who can afford it wonder why they should pay an extra 10.25% at Chicago boutiques when they can get the same item in other cities for less.

And the math doesn't just work for the well-to-do.  I know ordinary people in Chicago who fly to Minneapolis to do their back-to-school shopping at the Mall of America.  With zero sales tax on clothing, and a much lower sales tax than Chicago on everything else, they end up saving enough money to more than pay for the plane ticket.

Gotta get me some kids.

Off Topic: Illinois Sales Tax Hike on Candy

It's not very often I go off topic in this blog, but I thought I would in this case because I haven't seen this reported anywhere else:

Red Alert: The sales tax rate is going up on candy!

Chicago was once the candy-making capitol of the Midwest.  Though Brachs is long gone, and Fannie May is made in Ohio now, people who live here still have a sweet tooth.  Think about the number of candy stores, confectioners, manufacturers, cupcake joints, and other sweeteries in just the Loop and Near North areas.  I can think of a dozen off the top of my head, and more are coming (new cupcake joint will arrive at Block 37 / 108 North State Street next month).

So today (because in addition to this blog, there is a retail arm of the Artefaqs Corporation empire) I was notified by the Illinois Department of Revenue of yet another sales tax change.  Starting September 1, 2009 the following items will no longer be taxed at the "low" rate applied to food:

• Chocolate bars
• Yogurt or chocolate covered fruit or nuts
• Honey coated nuts
• Caramel popcorn
• Lollipops
• Snack mixes containing yogurt or chocolate
• Breath mints
• Gum

Instead, they will be taxed at the "high" rate, which means at least 10.25% in Chicago.  But if the item you choose to slake your sweet tooth contains flour, or is all natural, then it goes back into the food category, and thus the "low" tax rate:

• Chocolate covered cookies
• Yogurt covered pretzels
• Plain dried fruits
• Nuts with no added sweeteners
• Any candy that contains flour

Reminds me of when I lived in New Jersey, and popcorn was taxed as a snack, but the unpopped kernels were taxed as food.

The state of Illinois has also changed its definition of "soft drink" so that more items can be taxed at the "high" rate, or in Chicago -- the "super-high" rate.  A "soft drink" is now:

"...any non-alcoholic beverage containing natural or artifical sweeteners.  This includes, but is not limited to soda, sport or energy drinks, sweetened tea, waters containing natural or artificial sweeteners, beverages containing 50% or less fruit or vegetable juice, and all other preparations commonly known as soft drinks."

Of course, Chicago has its own soft drink tax, plus a bottle tax, so when you down a Vitamin Water from Jewel after September 1 it will cost you 13.25% in tax, plus an extra 5 cents for the bottle.  For those of you keeping score at home, two years ago this month it was possible to buy a 20 ounce bottle of Vitamin Water in Chicago for 99 cents.  This week I've seen it as high as $1.89 a bottle at Potash.  When this new tax goes into effect, say hello to $2.00 Vitamin Water.

As an aside, the state is also raising the sales tax on personal hygiene products, including soap, shampoo, toothpaste, mouthwash, deodorant, and sunscreen.  Wouldn't want Illinoians to smell too good, or be too healthy.

For those of you who want to look all this up, the source is the FY 2010-01 July 2009 Illinois Department of Revenue Informational Bulletin.  I don't know if it's online or not, since my copy came through the mail in dead tree form.