Via Montenapoleone Shopping Surge: Asian Tourists Lead Spending as Rents Skyrocket
Milan, italy – Luxury shopping street Via Montenapoleone is experiencing a boom in spending, driven largely by Asian tourists, even as rental costs reach record highs, effectively pricing out smaller retailers. Teh average receipt on the famed Milanese street rose to €2,379 in the first quarter of the year, fueled by high-value purchases from international shoppers.
The trend highlights a growing reliance on tourism for luxury sales, with Asian tourists leading the way, averaging a spend of nearly €2,900 per purchase. This is followed by American shoppers (€2,551) and those from the Middle east (€2,482). The appeal lies in exclusive collections unavailable elsewhere and the benefit of tax-free shopping, offering a VAT reduction. However, this success is juxtaposed with soaring rental costs that are reshaping the retail landscape of Via Montenapoleone.
Currently, average rental costs stand at €18,000 per square meter, meaning a 1,800 square meter space – similar in size to Gucci’s recently reopened flagship store – commands an annual rent of approximately €34 million.This financial barrier makes it nearly unfeasible for emerging brands and independent retailers without substantial backing to secure a presence on the street. The closure of historic glass retailer “Vetrerie di empoli,” located at number 22, exemplifies this challenge.
the data comes from the ”Main Streets Across the Word” report by Cushman & Wakefield, underscoring the increasing exclusivity and financial pressures on one of the world’s most prestigious shopping destinations.
May 11, 2024 (modified May 11, 2024 | 12:23)
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