A CapeMay.com report on 2026 storefront changes notes that the Toy Shop of Cape May is gone from Washington Street Mall this month. In its place sits Vagabond, expanding into its second Cape May location. Keep walking toward the 400 block and the storefront that housed Casales for 68 years, since 1957, now wears a new black exterior and wood trim, waiting to open as Queen May Jewelry. The storefront changes bring new operators to prominent spaces around town. Several of the new operators already had ties to Cape May City or nearby communities.
The changes are visible on the mall, promenade, and Beach Avenue. The examples below show new operators with existing ties to the area.
The Mall Trades Sideways
Down Liberty Way, Sea Bags closed its Cape May location after twelve years there, having opened in 2014. Cape May Snack Emporium moved into the space, selling gourmet popcorn, pretzels, and chips. A few doors over, Designer Bag Depot took the spot once held by Serafina Chic. The Depot's owner, Jeffrey Michael, already runs Art of Gymnastics & Cheer in North Cape May, so the mall didn't gain a new operator so much as an existing one adding a second address.
The clearest version of this pattern sits on Jackson Street, where Ladies Room Consignment Boutique closed and Niché Cape May opened in its place. The new shop belongs to Paula Leo, who is building out a skin care line in partnership with Exit 0 Skincare alongside artisan soy candles and consignment clothing. The new shop is an example of someone already tied to the local retail scene expanding what she offers under a new name.
The Promenade’s New Operators Have Area Ties
A 97.3 ESPN report covers this year's sale of the Cape May Arcades, including the Family Fun Arcade at 732 Beach Avenue and the newer Beach Arcade at 406 Beach Avenue. Both had been run by the same family since 1974. In February, the Chiarello family bought both locations. Joe Chiarello told 97.3 ESPN:
"The promenade is such an iconic and cherished place, filled with memories for generations of families."
The Chiarellos aren't newcomers to running local businesses either. Joe has described his family's history operating water ice stores, a pizza shop, a jewelry store, and a bagel shop in the area. They bought an institution from the family that built it.
A 97.3 ESPN report covers Surfside Grill's opening in the former Los Griegos Locos spot. Los Griegos Locos had replaced El Pueblo Taqueria the year before. The report quotes Jess and Colin describing themselves in their announcement: "We're the future Cattells, Jess and Colin." Both graduated from Cape May County high schools. They are serving burgers, funnel cake, cheesesteaks, and other boardwalk staples between the Family Fun Arcade and The Fudge Kitchen.
One block over on Beach Avenue, Lost Boy by yb closed and Leone's moved in, a BYOB bistro serving Neapolitan and Bari style pizza alongside panuozzo sandwiches and mocktails. The address changed. The kind of business on it, casual, family run, food focused, did not.
Beach Avenue's Biggest Handoff
The biggest ownership change in Cape May City this year happened at Peter Shields Inn, the 1907 Georgian Revival mansion on Beach Avenue, in a transaction covered by WhatNow.com. It had operated as one of the city's most recognized restaurants for 16 years under its previous owners. This summer, Carl and Megan Messick took over both the inn and the restaurant. Carl spent a decade as PSI's executive chef before leaving to open his own restaurant, Grana BYOB, in West Cape May. He told WhatNow.com:
"Megan and I are so excited to come back to PSI and to continue what we've created with Grana."
Grana will keep operating under his ownership too, so the Messicks now run both restaurants rather than replacing one with the other. It is hard to find a cleaner example of the pattern: the person who spent ten years learning a building's kitchen is the one who now owns it.
What's Actually New
Not everything this year is a changed hand. Cape May Nature Trails, a free half mile boardwalk loop through woods and wetlands off Lafayette Street next to Cape May Elementary, opened last summer and has become part of the regular rotation for residents looking for a twenty minute walk with viewing scopes and benches along the way. No dogs, no bikes, just a quiet loop that didn't exist a few summers ago and now does. The promenade also picked up new benches this year, a small addition, but the kind that changes where people choose to sit and linger on an evening walk.
The trail and the benches are civic additions, not private sales; unlike the storefront changes above, they were added for public use rather than passed to new operators.
The Pattern, Stated Plainly
None of this means Cape May City is frozen. Businesses close. Leases end. A building that held Casales for 68 years now holds something else entirely. But when you trace who bought what this year, the answer keeps coming back to people who already had a stake in this town before the sale went through. The Chiarellos already ran local shops. The Messicks already ran a Cape May kitchen. Paula Leo already worked the retail floor. Jess and Colin already grew up here.
The names on the awnings changed. Several of the new operators already had ties to the area, giving this year's changes a familiar local dimension. If you live here, that is worth noticing the next time you walk the mall or grab a table on the promenade.
If you are thinking about where you fit into this town, whether you already call Cape May City home or you're weighing what a move here might look like, Seashore Realty and Lisa Bassett know these blocks the way the people running them do. Let's Connect.
