Landmark shop needs second miracle

Samuel Levine founded the Arcade Department Store in 1928. One year later the stock market crashed but the Arcade rolled on, becoming a Greenport landmark. It was located in the heart of the village in every sense of the phrase.

Sixty-nine years later it was going out of business and Greenporters were bereft. With its wooden floors and aisles of necessities and notions, it was an emotional touchstone to the good old days.

Then a mercantile miracle happened: Bob and Roseanne Paquette appeared. Not only did they buy the old place, but they vowed to keep it as it was.

Now, 13 years later, the country’s battling another financial crisis and some fear this one might finally be the Arcade’s Waterloo. The store’s been on the market for a year but there are no serious offers. “Only bottom-feeders looking for a fire sale,” Bob Paquette told me last week. “I’m not looking for that.”

In the meantime, Paquette has reefed the store’s sails to weather the storm. Among other things, that’s meant cutting the staff from 22 to eight. Painful? “It certainly is,” he said. “Hours have been cut somewhat too.” Nevertheless, he said morale remains remarkably high. “The people here know we’re doing the best we can,” he said. “I’m very lucky; I’ve got a good crew.”

While the store cuts back, of course, costs do not. Energy, taxes, insurance – “they’re all going up,” Paquette said. “I’m trying to reinvent the store to keep it together.”

That reinvention involves a plan to lease out one-third of the space to others with products to sell. Products like sporting goods, shoes, linens, jewelry, gifts and art. “People are talking to me,” he said. “I’m taking phone numbers and will determine what’s best. I don’t want a flea market feel.”

Paquette said sharing space is an old idea that’s been used successfully across the country as the big-box revolution gutted downtowns. And for the record, he said, that’s what’s happening with the Arcade.

“It’s been very difficult to keep it going,” Paquette said. “There are so many second-home owners out here now,” and they tend to gravitate to Riverhead for their serious shopping. “It was hard when it was just Tanger,” he said. “But now it’s Tanger, Sports Authority, Best Buy, Michael’s, Border’s, TGIF. People make it a destination and stay all day.”

It’s “the way America’s gone,” he said, noting the transition from downtown shopping at places like Bohack and Sears.

Add to that a Great Recession and the slide gets steep. “New York sales tax receipts are down 30 to 35 percent,” Paquette said. “That tells you what’s happening.”

It’s a grim turn for someone who has a genetic attraction to all things five-and-dime. Paquette’s father was in the business for 50 years. “Retail was in my blood,” he told The New York Times in 1996. “I was always on the floor with my dad.”

Paquette himself worked at McClellan-McCrory in Riverhead before going into radio in New York. When he left that career in 1996, it was almost kismet that he found the Arcade with a “For Sale” sign in place.

It was a fortuitous pairing for both parties, but the joy is draining away now. “It’s a dinosaur,” Paquette said, and it would take a special person to want to ride it. “We carry over 40,000 items. A lot of people are intimidated by the inventory alone.”

The last year has been funereal for Paquette. Once he lived on a boat, and now he dreams about doing that again. Then there’s this fantasy: “I’d rather be a customer at the Arcade than the owner.”

Nevertheless, he’s going to soldier on with the shared-space plan in hopes that the old variety store can ride out this latest tempest.

Thirteen years ago I wrote a column wishing that there could be some kind of business preservation program, because some shops are as important to our sense of place as are the farms and the old homes we currently strive to save. The focus of the column was the Arcade. Then, miraculously, the Paquettes arrived and did it.

Is it too much to hope for another miracle?

Long Island Business News / December 16, 2009