Crain's New York - October 1, 2012 - (Page 9)

IN THE BOROUGHS BRONX Paper profits Continued from Page 1 original companies that laid the foundation by saying, yes, the Bronx is viable for business,”said Cedric Loftin, district manager of Bronx Community Board 1,which includes the area. “It is not considered a risk anymore to move your business here.” Thirty years ago, the move was risky. Back then, when company founder Herb Sedler opened his warehouse on East 132nd Street, hypodermic needles littered area streets, and corpses turned up with disturbing frequency. Today, the area supports new restaurants like the Bruckner Bar & Grill and Ceetay sushi. And coming next year will be the biggest thing to hit the Bronx in years: Grocer FreshDirect will be moving its headquarters, and more than 2,000 jobs,to the neighborhood. “This area has gone from desolation to a healthfully occupied set of businesses and even restaurants that didn’t used to be there,” said Jordan Sedler, who a decade ago succeeded his father as president of Paper Enterprises, a company that today boasts revenue of between $50 million and $100 million a year. Rise in number of “We call it our chain stores in ’11 little slice of Source: Center for an Urban Future heaven.” So confident was Herb Sedler about the area Portion of Bronx that 15 years ago households without a car he began hosting Source: Tri-State a biennial trade Transportation Campaign show in the Port Morris warehouse for all of the Firm HQs that company’s venBronx Overall dors. More than Econ. Dev. Corp. has helped 150 major manurelocate to boro facturers regularsince ’09 ly make the trek. Source: BOEDC “He gets all of his vendors and suppliers and makes them come to the Bronx,” said Frank Randazzo, director of the Bronx Empowerment Zone, a program at the Bronx Overall Economic Development Corp. “He attracts interest in the area from other businesses,” he said, adding that Paper Enterprises often sponsors BOEDC events, providing cups, plates and other supplies. you going to get all those things?” Too small to buy big Among that army of smaller variety outposts is C&S Value Stores, a local chain of discount shops. Its stores are small, so they can hardly buy in bulk. “I’m not sure big manufacturers have any place for small guys like me,” said Carlos Neto, head buyer for C&S. “That’s where Paper Enterprises comes in—I buy with them so I can sort of compete.” That’s why Mr. Neto is eagerly awaiting the new wave of products. He had to stop carrying Tide detergent because a big chain store down the block sells it for so much less. “I can’t even buy Procter & Gamble goods wholesale for the prices that store’s retailing them for,” Mr. Neto said. But he’s been able to keep all his stores open by having the right mixture of good prices and variety. Jordan Sedler said it’s his mission to deliver both. “We try to have a gigantically broad selection of goods so that we can make deliveries every day, if we want, to support the independent retail outlet against the invasion of the national dollar stores,” he said. LISTEN to a discussion at CrainsNewYork.com/podcasts FROM AROUND THE CITY BROOKLYN And then there were two As recently as June,Bushwick had no bookstores. Today, it not only boasts two, but also, as befitting an increasingly residential area bordering trendy Williamsburg, these are no ordinary stores. Molasses Books, a seller of used volumes, sits at 770 Hart St. Founder Matthew Winn serves coffee, and soon wine and beer. The shop debuted in July, and Mr. Winn said business has fluctuated since, as the novelty has worn off a bit. “People aren’t traveling to come here,” said Mr. Winn, noting that’s OK with him because he wants the store to be a place where locals come in and hang out awhile. Happily, that somewhat different plan has diminished any spirit of competition with Bushwick’s other new bibliophile destination, Human Relations, a 10minute walk to the west at 1067 Flushing Ave. That more traditional store is an offshoot of Williamsburg shop Book Thug Nation. —cara eisenpress ODDS & ENDS 3.8% 61.6% 13 BE FIRST MORE OFTEN. THE MOST FIRST CLASS SEATS FROM NYC. Yankee fans Today, the company has grown to 150 employees, drawn mostly from the borough. One of its four divisions supplies national restaurant chains, corporate offices and a Bronx landmark—Yankee Stadium—with food service and janitorial products. Another supplies small discount and variety stores. Courtesy of the recent acquisition, the number of its offerings will soar by nearly 50% to 3,000—everything from shampoo to charcoal. “The ability to get stuff delivered at a competitive price is critical to our bodegas and small novelty stores,” said Mr.Randazzo.“In one truckload, Herb [Sedler] has up to 100 items— if you’re a small business, how else are DELTA .COM/NYC October 1, 2012 | Crain’s New York Business | 9 http://www.CrainsNewYork.com/podcasts http://www.DELTA.COM/NYC http://www.DELTA.COM/NYC

Table of Contents for the Digital Edition of Crain's New York - October 1, 2012

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
CORPORATE LADDER
FROM AROUND THE CITY
OPINION
GREG DAVID
REAL ESTATE DEALS
REPORT: SMALL BUSINESS
CLASSIFIEDS
FOR THE RECORD
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crain's New York - October 1, 2012