Milan is both Italy’s financial and fashion centre, home to several major retail chains and luxury brands including Giorgio Armani, Gucci, Prada and Versace. Milan also hosted World Expo (1st May to 31st October 2015) attracting a total of over 21 million visitors across the world.The event is organized by the Bureaux International des Expositions and is one of the world’s oldest and largest international exhibitions, taking place every five years and lasting for six months.
Milan city centre has a long established tradition of retailing, which dominates both the city itself and its metropolitan area, and benefits not only from residential population but also from a daily flux of workers and tourists. Milan high streets are located mainly in the historic centre and feature approximately 1,000 shops.
Although not untouched by the current climate of uncertainty, the retail market in Milan has held up well, namely Via Montenapoleone, Via Sant’Andrea and Corso Vittorio Emanuele.
The concentration of luxury brands is in the so called “Quadrilatero della Moda,” represented by Italy’s most expensive street Via Montenapoleone and adjacent streets, featuring approximately 300 top domestic and international brands. Recognized worldwide, these streets have achieved brand status. Competition among retailers to secure and maintain a presence in this area has resulted in both exceptionally high rents and key money. Via Montenapoleone, in particular, continues to attract phenomenal interest from retailers, although Via Sant’Andrea and Via della Spiga today have emerged as alternative locations.
Milan is the province with the largest out-of-town retail offer of the region of Lombardy, with 1.1 million sqm across 48 schemes and approximately 2,200 shops. The retail density stands at 361 sqm per 1,000 inhabitants, above the national average (266 sqm per 1,000 inhabitants).
Quadrilatero della ModaThe concentration of luxury brands is in the so called “Quadrilatero della Moda”, represented by Italy’s most expensive street Via Montenapoleone and adjacent streets (Via Sant’Andrea and Via della Spiga), featuring approximately 300 top domestic and international brands. Via Montenapoleone, which continues to be a global symbol of the extreme luxury market, features about 80 shops including fashion brands the likes of Louis Vuitton, Dior, Cartier, Rolex, Mont Blanc, Hogan, Bulgari, Armani Collezioni, Prada, Damiani, Corneliani, Valentino, Ferragamo, Bottega Veneta, La Perla, Ermenegildo Zegna, Loro Piana, Aspesi, Versace, Gucci, Hermès, Jaeger Le Coultre, Omega, Moncler.
Corso Vittorio EmanueleClose to the prestigious "Quadrilatero della moda," Corso Vittorio Emanuele II represents the main mid-market shopping area. Pedestrian-friendly and running 400 meters from Piazza San Babila to Piazza Duomo, it comprises about 60 shops and is dominated by multiple operators, both national and international. Main retailers are Zara, H&M, Gap, Banana Republic, Mango, Sephora, Bershka, Disney, &Other Stories, Furla, Max Mara, Diesel, Sisley, Benetton, Kiko, Liu. Jo. Worthy of note is the presence of La Rinascente’s largest flagship store, boasting an average of 10 million visitors per year, Excelsior department store (Galleria del Corso) and the 12-level Brian & Barry building (6,000 sqm) off Piazza San Babila. The outstanding performance of the Zara store must be remarked, with exceptional retail sales putting the store at the top position worldwide.
Worthy of mention is Via San Pietro all’Orto, a side street of Corso Vittorio Emanuele, where Abercrombie & Fitch opened its first store in Italy; this street comprises some 30 shops with a good selection of top brands such as Jil Sander, Samsonite, Pronovias, Alexander McQueen, Brooks Brothers, Pomellato, Versace and Harmont & Blaine.
Corso VeneziaAnother mid-upper location is Corso Venezia lower part, running north for 200 mt from Piazza San Babila. It offers some 30 shops including Braccialini, Nero Giardini, Dolce & Gabbana, Stone Island, Zara Home, Wolford, COS, Christofle, Prada, Missoni.
Via DanteVia Dante is an important mid-market pedestrian-only retail street connecting two important historic sites, the Duomo and Castello Sforzesco. There are some 70 shops including brands the likes of Sephora, G-Star, Moleskine, Foot Locker, Aldo Shoes, Celio, Lush, Le Coq Sportif, Petit Bateau, Kiehl’s, Geox, Triumph, OVS, Kiko.
Corso VercelliCorso Vercelli, some 900 metres to the west of the centre, serves one of the wealthiest residential districts and offers a large amount of retail provision with over 90 shops, with a large representation of local operators. Main multiple retailers are Comptoir Des Cotonniers, Montblanc, Swatch, Zadig & Voltaire, Twin set, Accessorize, Max & Co., Lacoste, Muji, Furla, L'Occitane En Provence, Imtimissimi Uomo, Tru Trussardi, Dimensione Danza, Diesel Kids, La Perla, Victoria’s secret, COS and H&M.
BreraClose to the prestigious "Quadrilatero della moda," also worthy of note is the Brera fashion area, one of the most characteristic suburbs of the old town Milan, mainly populated with bars and restaurants. The most important streets are Via Brera, Via Pontaccio, Via San Marco, Via Solferino, Via Fiori Chiari, Via Mercato and Via Madonnina. Brera also offers an interesting itinerary for the shopping which attracts brands of mid-up level making of Brera a fashion area. There are in fact retailers such as Gucci, Fix Design, Blues Brothers, The Bridge, Liu Jo accessori, Carla G, Golden Goose.
Via TorinoVia Torino, another of Milan’s main shopping streets, connects Piazza Duomo with the characteristic Ticinese district along some 400 meters. It comprises about 110 shops and in recent years the street developed with many shops geared mainly to the young set and the casual style is sporty. Main retailers are Victoria’s Secret, Size?, Zara, Bershka, Foot Locker, Nike, Mango, Pull & Bear, MAC Cosmetics, Pimkie, Guess, Muji, Accessorize, Tally Weijl, H&M, Yamamay, Terranova, OVS
Corso Buenos AiresCorso Buenos Aires is Milan’s longest retail street (1.4 km) and is detached from the very centre of the city, connecting Porta Venezia with Piazzale Loreto; it represents the main communication artery connecting the city centre with the small business and large scale industrial district to the north of Milan. It includes just under 300 shops and is characterized by middle-low range fashion and very high pedestrian and vehicular traffic. Main retailers are Levi’s, Benetton, Adidas, Foot Locker, Swatch, Zara, H&M, Bershka, Promod, Pimkie, Camaieu, Guess, Douglas, Stradivarius, OVS, Pandora, Kiko, Fossil, Accessorize, Calzedonia, Intimissimi.
Carosello (Carugate)Located in the town of Carugate, some 15 km North-East of Milan city centre, Carosello opened in 1997 and represents one of the leading shopping centres in Milan. Having undergone refurbishment and extension, the scheme today provides nearly 53,000 sq.m of retail floor space and food court, accommodating 113 units. The food anchor is a Carrefour hypermarket. Stand alone units are Ikea, Leroy Merlin and Decathlon. It includes international brands such as Media World, H&M, Hollister, Zara, Apple. Yearly footfall: 8.5 million visitors.
Fiordaliso (Rozzano)Fiordaliso is located in Rozzano, about 10 km south of Milan city centre, and opened in 1992. Extended and refurbished, it provides some 75,000 smq of retail floor space, including the adjacent retail park and a 13-plex cinema. The food anchor is an Iper hypermarket, while the mall offers a good selection of domestic and international retailers across some 130 units. Yearly footfall: 8.6 million visitors.
Milanofiori (Assago)Milanofiori is located in Assago, about 10 km south of Milan city centre. It first opened in 1982 and has since been extended and refurbished, so that it now offers some 47,000 sqm; the food anchor is a Carrefour planet hypermarket, while the mall accommodates some 95 units including domestic and international retailers. Yearly footfall: 6.5 million visitors.
|SHOPPING CENTER TO WATCH OUT FOR|
|ARESE SHOPPING CENTRE|
|Total Size (Sq.m)||92,000|
|- Retail GLA||n/a|
|- Leisure/Entertainment GLA||n/a|
|Planned Opening Date||2016|
|Description||Arese shopping centre, a 90,000 sqm GLA development, is due to open by summer 2016. This will represent the first large-scale shopping centre (>80,000 sqm) in the Milan area and will include the first Primark store in Italy. It will be also anchored by an Iper hypermarket together with a mall of over 200 shops.|
|KEY AREAS / STREETS/SHOPPING CENTERS||CONSUMER PROFILE||MAJOR RETAILERS PRESENT||NEW ENTRANTS||TYPICAL RENT FOR UNIT OF 200SQM (€/SQ.M./YEAR) *||RANGE OF UNIT SIZES (SQ.M.) **|
|Corso Vittorio Emanuele||Most important, mass market shopping pedestrianised street in Milan. Middle range fashion||Zara, H&M, Gap, Banana Republic, Mango, Sephora, Bershka, Disney, &Other Stories, Furla, Max Mara, Diesel, Sisley, Benetton, Kiko, Liu. Jo.||6,000 (including key money)||Shop-size varies from small units of 30-50 sqm to large stores of over 1,000 sqm|
|Via Torino||Mid-level brands geared mainly to the young set and the casual style is sporty||Zara, Bershka, Foot Locker, Nike, Mango, Pull & Bear, MAC Cosmetics, Pimkie, Guess, Muji, Accessorize, Tally Weijl, H&M, Kontatto, Yamamay, OVS, Panino Giusto, Victoria’s secret, Size?.||Victoria’s Secret, Size?||2,700 (including key money)||Shop-size varies from small units of 30-50 sqm to large stores of over 1,000 sqm|
|Via Dante||Important pedestrian-only retail street. Middle range fashion||Sephora, Foot Locker, Aldo Shoes, Celio, Lush, Le Coq Sportif, Petit Bateau, Kiehl’s, Geox, La Perla Studio, Triumph, OVS, Kiko, G-Star, Moleskine.||G-Star, Moleskine||2,000 (including key money)||Shop-size varies from small units of 30-50 sqm to large stores of over 1,000 sqm|
|Corso Buenos Aires||Longest retail street in Milan (1.4 km). Very high pedestrian and vehicular traffic. Middle-low range fashion.||Levi’s, Benetton, Adidas, Foot Locker, Swatch, Zara, H&M, Bershka, Promod, Pimkie, Camaieu, Guess, Douglas, Stradivarius, OVS, Pandora, Kiko, Fossil, Accessorize, Calzedonia, Intimissimi.||2,200 (including key money)||Shop-size varies from small units of 30-50 sqm to large stores of over 1,000 sqm|
|Corso Venezia||Mid-upper market location comprising about 30 national and international retailers||Braccialini, Henry Cotton’s, Nero Giardini, Dolce & Gabbana, Stone Island, Zara Home, Wolford, COS, Nomination, Christofle, Prada, Missoni.||3,500 (including key money)||Shop-size varies from small units of 30-50 sqm to large stores of over 1,000 sqm|
|Corso Vercelli||Mid-market location comprising over 90 shops along 900 m||Comptoir Des Cotonniers, Montblanc, Swatch, Zadig & Voltaire, Twin set, Accessorize, Yamamay, Calzedonia, Max & Co., Lacoste, Muji, Furla, L'Occitane En Provence, Tru Trussardi, Dimensione Danza, Diesel Kids, La Perla, Victoria’s secret.||Victoria’s Secret||1,500 (including key money)||Shop-size varies from small units of 30-50 sqm to large stores of over 1,000 sqm|
|Brera||One of the most characteristic suburbs of the old town Milan, offering mid-up level brands||Gucci, Fix Design, Blues Brothers, Mark Jacobs, Pinko, The Bridge, Liu Jo accessori, Carla G, Golden Goose.||1,000 (including key money)||50 - 800|
|Quadrilatero della Moda - Via Montenapoleone||World famous luxury high street, features about 80 shops||Louis Vuitton, Polo Ralph Lauren, Dior, Cartier, Rolex, Mont Blanc, Hogan, Bulgari, Armani Collezioni, Prada, Damiani, Iceberg, Corneliani, Valentino, Ferragamo, Bottega Veneta, La Perla, Ermenegildo Zegna, Loro Piana, Aspesi, Versace, Gucci, Hermès, Jaeger Le Coultre, Omega, Moncler.||12,000 (including key money)||50-300|
|Quadrilatero della Moda - Via Sant’Andrea||Comprises some 30 shops including top luxury fashion brands||Church’s, Missoni, Cesare Paciotti, Chanel, Moschino, Berluti, Trussardi, Agnona, Bottega Veneta, Miu Miu, Stuart Weizman, Borsalino, Jimmy Choo||5,700 (including key money)||100-200|
|Quadrilatero della Moda - Via della Spiga||Comprises some 70 shops with nearly half of which representing national fashion brands||Chopard, Tod’s, Vilebrequin, Tiffany & Co., Moncler, Dolce & Gabbana, Longchamp, Peuterey, Frette, Krizia, Porsche Design, Blumarine.||4,800 (including key money)||100-200|
|Quadrilatero della Moda - Via Manzoni||Some 80 shops including top brands||Wolford, Paul Smith, Emporio Armani, Les Copains, Gallo, Coccinelle, Pal Zileri, Patrizia Pepe, Hackett London, Bellora, 7 for all Mankind.||2,500 (including key money)||150-300|
Data as of Q1 2016. *Please note that rents vary greatly according to the position on the street, the size of the shop, and the internal layout, as well as the number of windows facing the street; therefore rental values may be much higher than those reported above. **General indication of unit sizes.
Although over the years, and especially during the recent economic downturn, families have reduced their food spending, eating out has become increasingly common.
The frenetic rhythm of modern life has had an impact on consumer trends. In particular, urban food establishments cater to workers who often live far from their job and have little time for their lunch break. This has been one of the drivers leading to the growth of fast food operations.
The food sector can in fact be divided in two main categories: traditional activities and modern retail food concepts (such as snack bars, fast food and sliced pizza), which now account for a third of total turnover.
While Italians tend to have a preference for traditional cuisine, a quarter of diners demonstrate curiosity towards foreign foods.
The Italian restaurant sector has been successful in answering the shifting demand, giving customers mainly what they can’t get easily at home. Emerging trends in new formats are “restau-fashion” (food and fashion), “young bars” (beer and trendy products) and wine bars. Many others are betting on the use of technology, such as wi-fi areas, and e-cash systems.
Though there is interest on behalf of international operators to enter the Italian Food & Beverage market, difficulties could be represented by the limited number of premises available on the high streets which satisfy the national regulation requisites, as well as the strong competition represented by private local businesses.
The rent requested varies greatly according to the position on the street, the size of the shop and the internal layout, as well as the number of windows facing the street.
A special mention to the Eataly format. It is now well known and present in the most important cities in Italy and abroad; it carries a very simple idea: gather all high-quality Italian foods under one roof, where you can eat, shop and learn. Eataly opened in Milan in 2014 (Piazza XXV Aprile) in a former theatre: it offers 5,000 sq.m. devoted to food and the best, locally sourced products spread out over 4 floors hosting not only 19 eateries and a starred restaurant (Alice) but also rooms for food workshops, a convention centre and loads and loads of music.
Within the major shopping centres, located out-of-town, the traditional anchor represented by the hypermarket is complementary to a far wider merchandising and leisure mix, with food courts and catering operators playing an increasingly important role in attracting and prolonging visitors stays. Within the larger schemes, the major brands such as Old Wild West, Mc Donald’s, Arabian Kebab, Kikko, Rossopomodoro, La Bottega del Caffè, La Piadineria, Alice Pizza, Burger King, E’ Arrivato Paolino, Il Lupo, Lindt, Portello Caffe’, Wiener Haus, Flunch, Autogrill Ristorante Ciao, Brioche Dorée, Burger King, Cantina Mariachi, Panino Giusto, Roadhouse Grill are to be found.
|KEY AREAS||CONSUMER PROFILE||FOOD & BEVERAGE OPERATOR INCLUDING||RENT FOR 350 SQM UNIT|
|Navigli e Ticinese||Weekday customers mainly local/residential customers with few tourists, weekend movida||Rosso Pomodoro, Fratelli la Bufala, California Bakery, Pretto, Panino Giusto, Amorino||NA|
|Corso Como/Isola/Corso Garibaldi/Brera||Mixed residential and tourist clientele; high concentration of offices and the fashion sector, but also one of the most famous nightlife districts||Princi, Rosso Pomodoro, Panino Giusto, Obikà, Eataly, Ham, Anema & Cozze, Panarello, Pandemus||NA|
|Historic Centre||Are mainly tourists and workers, hosts traditional bars, restaurants and pastry shops as well as the new formats, both national and international||Fresco e Cimmino, Signorvino, Laduree, Obikà, Fratelli la Bufala, California Bakery, Grom, Old Wild West, Ham, Anema & Cozze, Illy, Venchi, Ca’puccino, Bianchi Cafè||NA|
Data as of Q1 2016
THOMAS CASOLOPartner, Head of Retail Italy, Cushman & Wakefield LLP
Via Filippo Turati 16/18
Milano, 20121, Italy
Tel: +39 02 63799 218
Mob: +39 335 6512556