Milan’s Via Montenapoleone Leads in Luxury Shopping and High Rents

⁣ Updated May 11, 2024

Milan’s Via Montenapoleone, the heart of the city’s “quadrilateral of luxury,” ‍not only ‍commands the highest retail ‍rents globally but also sees some of‍ the highest average customer expenditures. This famous fashion street is a prime destination for luxury shopping, attracting affluent shoppers from around the⁣ world.

Data from the Duco Travel Summit‍ indicates that ⁤in 2023, the average purchase amount per customer was 2,350 euros. ⁤this figure⁤ reflects the high-end ⁣positioning of brands located on Via montenapoleone. Sales have ⁣accelerated beyond pre-COVID levels; in 2019, the average receipt was 2,175 euros, according to Global Blue. This trend continued into the first three months of 2024, with average spending reaching 2,379 euros.

Tourists, especially those from ‍Asia, ⁣drive ⁢much of the spending. Their purchases focus on clothing, accessories, jewelry, and watches. This⁤ is due to exclusive product offerings and the economic advantages of tax-free shopping. Asian tourists lead in average expenditure, with about 2,900 euros spent in early 2024, followed by U.S. shoppers (2,551 euros) and those from the Middle East (2,482 euros).

The high demand for retail space has led to record rents. According to Cushman & Wakefield’s “Main Streets ⁤Across the World” report, the average cost is 18,000 euros per square metre. Renting a ⁣space of about 1,800 square meters, similar to the Gucci store at number 7, costs ⁣around 34 million euros annually. These costs create barriers for emerging brands and independent retailers.

The recent announcement of the impending closure ⁢of “Vetrerie di Empoli,” a historic glass shop‍ at number 22,underscores this challenge.

What’s next

Via Montenapoleone is expected⁢ to maintain its status as a premier destination for luxury shopping,tho rising rents may continue to challenge smaller retailers.