PQ Olsson’s Announces Closing

It seemed like they had been there longer. 12 years ago my friend worked at Footnotes & the most interesting people would come in. That stretch was like R street’s weird cousin. Im glad to hear the space will likely not sit empty.

This is very sad indeed. Olsson’s is that little bit of neighborhood charm that helps make Penn Quarter what it is.

It felt so “uncommercial” and added a touch of home.

I remember when it first opened, it was so exciting to have a bookstore downtown. This sad announcement reminds me of friends that I used to meet up with at Footnotes for a cup of coffee – now we’re no longer in touch.

Having done a bit of travelling overseas, I can personally vouch for the good that is Wagamama.

However, this is very unfortunate news. Not simply for those (like me) who work, live in or frequent PQ and have spent a number of hours browsing, listening and enjoying munchies in the Footnotes Cafe…it’s unfortunate that yet another piece of independent retail is falling by the wayside, and the diversity of businesses along 7th St. is narrowing. In an area overblown with restaurants, more than handful of which fill the Asian/Fusion category, it’s difficult for me to envision Wagamama’s presence having much of an impact on the neighborhood. Don’t get me wrong, I’m glad the space will be filled. But trading a quality independent bookseller for a chain Fusion restaurant doesn’t exactly qualify as a “win” for PQ in my mind.

I support local stores but Olson’s has it’s drawbacks: Music too expensive, reading series too liberal (let’s have some diversity of opinion), never open late.

We’ll get some crap chain store to replace it. A friend of mine who promotes small businesses says DC officials just don’t get it. The officials claim they support businesses because they give tax credits to developers! WTF? The most vibrant business communities in DC (H St., U St., Adams Morgan, 14th St.) arose without “developers” and tax credits ie pork.

Lifestyles (the clothing store) on 7th has a for lease outside. It may be the space above though.

Unfortunate about Olsons and the small businesses in general, but Wagammama’s should be a positive.

Its a great place and while technically a chain, its not a typical chain restaurant like we could have gotten (ie something awful like a Bennigans or Ruby Tuesdays). It has a neat style to it. Love the ones overseas.

I’m no fan of chains, but this statement is ridiculous:

“The most vibrant business communities in DC (H St., U St., Adams Morgan, 14th St.) arose without “developers” and tax credits ie pork.”

Really? No developers? What would you call PN Hoffman, for just one example that cuts through a large part of most of those neighborhoods?

who’s to stop developers? at this point rents are so high that small businesses in a neighborhood like PQ don’t have a chance. it’s up to government to put regulations in place to help small businesses, not drive them out. what’s city council been doing? can they fight this? do they care?

“Unfortunate about Olsons and the small businesses in general, but Wagammama’s should be a positive. ”

Nothing against Wagamamma’s, but really, why does PQ need yet another restaurant? What will Wagamama’s offer that, say, Teasim or Oya would not? If PQ was filled with other bookstores and similar retail, I might understand…but the only “positive” I can find about this is that the space ostensibly won’t be sitting empty.

I dislike Doug Jemal as much as the next guy (maybe more) but I am not sure what the government / city council would do that would be appealing to the taxpayers.

#1 – somehow prohibit or discourage chain retailers from opening up which would therefore deprive a landlord from realizing the full value of their property.

#2 – provide a subsidy to locally owned stores allowing them to pay the full value rents.

Neither of these strikes me as a great idea #1 being unfair to the property owner and #2 being unfair to the taxpayers (who have already effectively voted with their feet by going to Barnes and Noble or Amazon.com.

#10 – I wasn’t making a comment re: pros or cons of another restaurant, but just responding to #5’s comment that we would get some “crap chain store to replace it”.

I guess for me, if Wagamamma is actually coming its is a positive. I like their food and to me its better than turning it into a Staples, a chain bookstore, a McDonalds or something like that.

I’ll also miss the Ticketmaster outlet.

#12, definitely agree that WM’s is better than most other “chain” options. I just hate seeing PQ going almost all restaurant. Adams-Morgan is practically all bars/nightclubs now, and I’d hate to see PQ turn into nothing but a restaurant scene. I don’t portend to have solutions for this, but a diversity of retail is the hallmark of a healthy neighborhood.

A neighborhood without a local bookstore isn’t really a neighborhood. It’s more like an intersection.

I always read about how people slam the developers that are putting restaurants/retail in the neighborhood. What have any of you people done to make the neighborhood a better place to live other than complain?

I stopped urinating in public! Doesn’t that count for something?

Unless you’re a mega book chain, small bookstores can’t make a profit downtown. Period. They’re going the way of the blacksmith, shoefitting fluoroscopes, and good manners.

I do think that #11, LiveAndWorkinPQ, had the most reasonable post about this.

It is sad to see local stores succumbing to large chains, but what can really be done about it?

You can say to only support local stores, but all too often they don’t offer everything that national chains do, as in Barnes & Noble vs. Olssons.

This isn’t unique to PQ, or DC, but nationally.

Not too sure there’s anything to be done about it.

“I always read about how people slam the developers that are putting restaurants/retail in the neighborhood. What have any of you people done to make the neighborhood a better place to live other than complain?”

What does one have to do with the other? If an individual has been participating in community groups, supporting local establishments and being a good citizen, does said individual have the right to “complain” about developers coming into the hood?

And most people here aren’t “complaining” about the developer(s). Seems most people will simply miss Olsson’s, or at least the diversity in retail that it brought to the neighborhood.

rent aside, one question to ask is “did Olsson’s compete effectively?” the store seemed OK and I certainly liked renting my DVDs there but the character it exuded didn’t strike me as competitive. it did have a nice niche when it came to book talks.

I think 7th Street is now the most attractive street for tourists and visitors who stream up from/down to the Mall. three Metro exits, two museums, many restaurants, the Chinatown Arch and the Verizon Center have 7th Street frontage so a retailer that isn’t like the others has to work a bit harder to attract patrons. I didn’t sense that Olsson’s was ready to change with the times or the neighborhood and it had a number of years to prepare to compete whether it was by boosting sales, cutting costs or making the City Council aware of its plight. the rent hike may have come as a “surprise” but given what’s going on around them, it probably shouldn’t have been a shock.

I’ll still miss the convenience though.

For those of you who know the very unique restaurant Florent in the New York meatpacking district, they are also closing due to high rent. The owner had this comment:

“The neighborhoods end up being just expensive stores. But I only hear about people being angry and not doing anything about it. So I’m telling people, yes, there is a problem, but let’s not just put the blame on the people that are in real estate, like my landlord. Why should she rent for less than market? Just so people can have their meals subsidized by her? It doesn’t make sense. If people want to be constructive, they have to start talking to their elected officials. Instead of just being angry, people should consider what they want their city to be.”

http://www.timeout.com/newyork/articles/restaurants-bars/30420/florent-morellet

Some things the city council can do:

1. Enforce the vacant property laws. Big “developers” rather have thier property sit vacant than lower the rents. Is Jemal paying any class 3 tax?

2. Stop raising commercial real estate taxes 500% a year. Yes, this actually happens. There is no cap on real estate tax increases for commercial property. So if a business comes into a struggling neighborhood and improves it, they are rewarded with higher taxes.

3. Stop giving TIF handouts to big developers. How can a small business compete when the big boys with political connections get all the breaks?

4. Reform DCRA. Government regulation is onerous for small business who do not have lawyers and political pull. For example, a local coffee shop owner who does not live in the neighborhood is being refused a parking permit eventhough the owner is running a business. DCRA is also unfairly limiting the number of chairs the coffee shop is allowed to have.

Simply put, government should get out of the way.

#8 Apparently you didn’t live here before the luxury condos arrived.

#16 I’m slamming developers who get unfair advantage though political connections. By the way, I’m on my ANC’s committee on crime and public safety, I started an influential blog on vacant property issues, and my wife and I TNR (trap, neuter, return) feral cats in the neighborhood.

i do not know the intricacies of commercial real estate law, but it seems dc gov could do something to help the little guy. i would much rather my taxes go to help a small biz owner — even subsidize (gasp!) because with big biz tax breaks that’s essentially what’s happening with developers. am i right?

Why can’t a tax break to the local business be solely funded by tax revenues from national retailers? Any time a tax break is mentioned residents say that’s unfair ( i.e. “why should taxes on my hard earned income subsidize Olsson’s owner”). But why can’t it be simply revenue generated from higher taxes on retailers like Cheesecake factory, Nando, etc… if those chains are willing to pay higher rents I can’t imagine higher taxes will break the camel’s back.

How can Olsson’s be forced out of business, but that clothing store right down from it is still in business. That store seems hardly competitive. Do they get a special deal on rent or something?

#21 Very sorry to hear Florent is closing. It was always busy. Meatpacking district is going the way of Soho. You’ll have to go out to Williamsburg to find something special. It’s probably already peaked. Relish is really good. Nothing in DC comes even close with respect to food and hipness.

#23. Um, yes, I did. I have lived here for 13 years. When I moved here there were not many vibrant communities in the city at all. Yes, there was business, but it isn’t necessarily the type that should be encouraged. I remember the days of sitting at the the corner table at the Mark and watching the prostitutes and dealers conduct business using the location and the corner pay phone as tools.

Most of these communities have only become vibrant as the luxury condos arrived – or, at least, as their arrival became imminent (and publicized). Of those that you cited, Adams Morgan is the only one that does not necessarily fit into that category (possibly H street, I am not so up on H street development).

Although I disagree with your earlier statement (that which I quoted above), I am entirely in agreement with all of your proposals in #22. I think that it is sad that the city is not doing much more to protect the local character of its neighborhoods.

If I recall correctly, the council was having trouble coming up with a way to give just the businesses that people want helped a break. How do you define small and how do you define local? Does Five Guys get a break since they are from this area? Does the Old Ebbitt Grill and/or Clyde’s get a break since they are local and not a huge chain? How about places like Busboys & Poets, Cakelove, Cafe Atlantico or Zatinya, which seem to thrive in the high rent districts but are small, local business. How about the corner liquor stores that are local, small and seem to thrive everywhere? Do you ask businesses to show they aren’t making a great profit and that means they deserve a break?

It’s easy to point out the little guys that need help to stay around, but you need to be able to justify how you are determining how much aid to give to which businesses, and show that you are applying it evenly and fairly across the city, and still bringing in the revenue expected from business taxes. I get the feeling councilmen like Gray, Brown or Evans would entertain good ideas on this topic.

#27 RE:Nothing in DC comes even close with respect to food and hipness.

Sometimes I think we are getting there (eg 5th&I proposal with The Diner/Tryst guys). But then I see Rosa Mexicana (which some people think is really Penn Qtr coolness) locations on their website-in NYC they are in Upper West and East Side,etc and not Williamsburg or Meatpacking Dist. And they will soon open locations in Hackensack, NJ and National Harbor, MD. By this insufficient but fun to play with indicator, is Penn Qtr the Upper West side, or worse National Harbor “hood” of DC? I would take the Upper West Side but I dont know about the Natl Harbor.

May Cowboys and Poets and 5th&I project will bring something fun and unique and a little trendy without the velvet rope scene (in 4-7 yrs).

Olssons was not FORCED out. They did not try to find a new location, nor have they plans to expand. In fact, I would say from their actions (and what I have heard from some close to the store), that the owners got out when their lease was up, and will probably get out of the business in general as indie bookstores are able to compete less and less every day against BN/Borders/Amazon.

Do I have a problem with developers — NO. Without their vision, this neighborhood would still be a cracked out hell hole that closed at 5:00 sharp. And yes, they deserve to reap the rewards of bringing a desolate area back to life — that includes tax breaks and favors from the city.

Dont like it?! Then work to change it and stop complaining. There are many committees and organizations you can join to help make change.

As far as the big box stores coming in — its going to continue to happen, as (1) they have the money, (2) they have the desire, and (3) there is demand for their product. Trust me, they do not work on a “build it and they will come” model, but instead a “we did our homework over and over and determined there was a need and a market” model.

I hate CVS on every corner — and I know they plan on expanding even more (look out Platinum), but that is a reality of the market. Deal with it.

#20 says: “I didn’t sense that Olsson’s was ready to change with the times or the neighborhood and it had a number of years to prepare to compete whether it was by boosting sales, cutting costs…”

These are very hard times for book/record stores, and actually its impressive that Olssons was able to hold on at this location as long as they did. I don’t think this was a “surprise” or “shock” – you don’t hear any complaining from Olssons, do you? Here are the changes I observed in that store over the years to try to increase revenues and/or cut costs, while still making a great contribution to the fabric of PQ:

1. turned over a significant portion of floor space to a cafe (yes, its true, Footnotes was not there from the beginning).

2. Turned over more floor space to DVD rentals.

3. Cut inventory time and time again, while still maintaining a pretty good selection of new releases and catalogue items.

4. Sought new revenue streams by expanding into non-core business lines (selling beanie babies, etc.).

5. Shutting down the metro center store.

6. Modifying the Olssons card program to increase benefits to regular customers.

There’s probably a few other changes I’m forgetting (e.g., I’m pretty sure they didn’t have magazines in the beginning, but not positive on that one; same for the listening stations).

What else has happened in this business line downtown? Chapters came to PQ, and left. Borders came to PQ, but will be gone soon. Outside of our neighborhood, but not far away, the institution that was Tower Records went under. Going forward, it will be Barnes & Noble for PQ, and nothing else. I wouldn’t assume that B&N will be there forever either. Sure, its a big chain…but if we want retail in PQ, we have to shop at the stores that we have. I love Amazon and iTunes, but I’ll be making sure a sizable share of my purchases are at B&N.

Sorry about the lengthy comment, but I strongly disagree with the assertion that Olssons didn’t change with the times. The times have swamped the independent book and record store business (and non-independent as well).

btw: here’s some great historical PQ trivia relevant to all the comments re putting a restaurant in that space.
Q: what business considered going into that space before Olssons took it?
A: Les Halles (before they decided on their current Penn Ave location).

There is actually a guy and his wife in the hood who “traps, neuters,and returns feral cats in the neighborhood.” See # 23. Am I the only one who finds that a bit odd? when and where do you guys do this? Can anyone watch?

#32 – artisan resident – that is true that you didn’t hear shock from Olsson’s which is telling. they have other locations which make them a going concern. the digitization of consumer media (music, books, newspapers) means that retailing of such products has to evolve. someone will crack the code.

What feral cats? I’ve never seen any stray cats in our neighborhood. I think he must have been pulling our collective leg….or does it in some other neighborhood.

#33 see metroferals.org

#31 Developers have vision? Give me a break. The true pioneers are Jaleo, Adamson Gallery, Go Mama Go, Hamburger Mary’s, Apartment Zero, etc. What “tax breaks and favors from the city” did they get?

I just wanted to say hello and thank you to all of you soon to be former Olsson’s Lansburgh customers.

I was the first store manager at this location (pre-Footnotes, pre-MCI center, pre-amazing development of 7th Street corridor). It was still a great neighborhood to come to every day–between the daytime crowd, the neighborhood residents and the adventurous tourists asking where the Hard Rock cafe was.

I moved to the Old Town Alexandria store in 1995, but whenever I would visit the old digs I inevitably ran into former customers.

I’m sad to see it go, but I wanted to thank any of this blogs readers who were part of the community from 1993-95.

Olsson’s had been operating under a lease they signed 10 years ago. The landlord is going to get three times the rent from the new tenant. Part of their problem is the plight of independent bookstores (and I think that’s more an Amazon.com issue than one of vying with Borders and Barnes & Noble — some people browse at Olsson’s and then buy from Amazon), but the more fundamental problem is that the neighborhood is a lot more attractive than it was 10 years ago and rents have gone up.

I personally didn’t feel that Olsson’s made good use of their floor space, but I’ve only been in the ‘hood for a few years, and it may be that management saw the handwriting on the wall with the lease.

There’s a lot of stray cats north of the convention center in Shaw. They used to stake out my fish pond waiting for a chance to eat.

I’ll really miss you guys!

I’ve spent some serious cash in your store over the last 10 years and every penny has been worth it.

You have great books/DVDs and sponser great readings.

I’ll be going to the other stores for sure.

#32 — do you know for a fact that Borders is closing or are you just postulating?

It’s sad to see an independent bookstore close, but we also have the main branch of the DC public library in our neighborhood — it would be wonderful to pour some resources into making the library a more vibrant part of the community. Count me amongst those who didn’t buy at Olssons — browsed occasionally — but I don’t buy many books, choosing to get them from the library whenever possible; secondarily, if I want something specific I’ll usually buy it from Amazon when I can qualify for free shipping; and if I feel like spending a good few hours browsing, I’ll usually hit B&N where the selection is huge and my browsing feels more indulgent.

I’m not happy to see Olsson’s close, but I am a huge Wagamama’s fan from when I lived in the UK. It’s quite a different experience from the other restaurants in PQ, IMHO.

#41 – I don’t have any specific information. I was just speculating, based on news reports of financial troubles for the entire Borders chain, plus proximity of that store to B&N.