{"id":4281,"date":"2024-01-26T16:30:15","date_gmt":"2024-01-26T15:30:15","guid":{"rendered":"https:\/\/magazine.lineapelle-fair.it\/?p=4281"},"modified":"2024-01-30T09:22:51","modified_gmt":"2024-01-30T08:22:51","slug":"back-to-the-shop-the-resurrection-of-physical-retail-is-served","status":"publish","type":"post","link":"https:\/\/magazine.lineapelle-fair.it\/en\/focus-en\/back-to-the-shop-the-resurrection-of-physical-retail-is-served\/","title":{"rendered":"Back to the shop: the resurrection of physical retail is served"},"content":{"rendered":"

Call it ‘revenge’ or, more simply, ‘resurrection’: the pandemic has not sung the de profundis of physical boutiques in favour of online platforms. This is demonstrated by the real estate investments of the fashion and luxury brands: much more select than in the past but in constant and continuous growth. Tired of digital coldness, consumers want to return to real shopping experiences<\/strong><\/em><\/p>\n

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More and more people <\/strong>prefer to go to the shop <\/strong>to buy a dress or fashion accessory rather than search for it on the web. It is more than a return; it is a resurrection<\/strong>. The convenience of being at home, surfing, and almost certainly finding the cheapest price are no longer sufficient motivations<\/strong>. The consumer seems to prefer the services offered at the point of sale. Here, for instance, he can check precisely the colour of the product, the size, and the quality: he can wear it and see himself in the mirror. Above all, they can have an experience that is incomparable to <\/strong>staying in front of a screen and compulsively scrolling through social and web pages.<\/p>\n

The resurrection of physical retail<\/strong><\/h4>\n

Many believed that the pandemic had sung the de profundis of boutiques<\/strong>, with online platforms <\/strong>inevitably becoming the shopping destination for consumers of all ages<\/strong> – a hasty assessment. As soon as the restrictions were relaxed, people (even the very young) returned to the shops, tired of buying a fashion product online without experiencing any particular excitement<\/strong>. “The pessimistic cries about the end of physical retail now seem to be a distant memory <\/strong>as the industry enters a new normal<\/strong>“. So says Rob Travers<\/strong>, head of retail for Europe, the Middle East, and Africa at Cushman & Wakefield<\/strong>, one of the world’s largest private real estate companies.<\/p>\n

Involve, first of all<\/strong><\/h4>\n

Cushman & Wakefield has recently published the European Retail Radar <\/strong>report noting that, in the first six months of 2023, <\/strong>fashion brands covered more than 40 percent of the retail space rented in Europe by the same real estate company. This is the highest percentage compared to any other business<\/strong>. “Our analysis clearly shows that physical retail remains vital<\/strong>, as a brand touch point<\/strong>, supporting customer engagement <\/strong>and a wider range of commercial activity<\/strong>,” adds Travers. It is no coincidence that the Spanish fast fashion brand Mango <\/strong>has announced plans to open 500 shops in the next three years<\/strong>.<\/p>\n

Weighted openings<\/strong><\/h4>\n

Resurrection, then. But well thought out. A Bernstein <\/strong>study presented in June 2023 found that the retail investments of brands <\/strong>are focusing on a few<\/strong> but significant openings <\/strong>or restyling projects <\/strong>to make the shopping experience increasingly unique. For example, in the case of the Dior <\/strong>boutique at 30 Avenue Montaigne <\/strong>in Paris or the Tiffany ‘Landmark store’ <\/strong>in New York. Or, as in the case of the flagship stores <\/strong>that luxury brands are opening or renovating in certain key locations, among which Milan <\/strong>stands out.<\/p>\n

What happens in France<\/strong><\/h4>\n

The recovery <\/strong>of global tourism. The arrival in <\/strong>Europe of US tourists attracted by the favourable exchange rate. Due to Brexit, the abolition <\/strong>of tax-free shopping for foreign visitors in the UK. These are some of the factors that have prompted French <\/strong>luxury conglomerates <\/strong>to invest in the local property market, particularly in central Paris<\/strong>. ‘In recent months, luxury brands have invested several billion euros <\/strong>in acquiring retail space, demonstrating that they want to maintain a long-term, high-quality distribution network,<\/strong>‘ note analysts at Cushman & Wakefield. One example is the reopening of the department store La Samaritaine<\/strong>. LVMH bought <\/strong>it in 2001 and closed it in <\/strong>2005 to allow renovation work to be carried out. After almost 16 years <\/strong>of renovations and discussions between the old and new owners about its intended use, La Samaritaine reopened in 2021<\/strong>.<\/p>\n

The American case<\/strong><\/h4>\n

According to a recent report by the global real estate services company JLL<\/strong>, total US luxury goods sales have increased <\/strong>to almost $70 billion<\/strong>. One of the reasons lies in the commercial policies of brands that have expanded their national retail presence by more than 60,000 square metres<\/strong>. One of the most recent transactions saw Prada <\/strong>take over the entire building housing its flagship store in New York for $425 million.<\/strong><\/p>\n

The Chinese experience<\/strong><\/h4>\n

In China, <\/strong>digital is still crucial (see the success of platforms such as WeChat, Douyin, and Xiaohongshu), but physical shops are increasingly driving local spending. According to the results of a survey on Chinese luxury consumption in 2022<\/strong>, about 53% of the consumers <\/strong>surveyed (who shopped between September 2021 and September 2022) bought luxury items in physical shops<\/strong>.<\/p>\n

The triple in Italy<\/strong><\/h4>\n

Altagamma Consensus 2024 <\/strong>estimates that the retail channel will register +7.5% in sales <\/strong>this year compared to 2022, followed by online with +4.5%. The difficulty is wholesale. According to the Altagamma-Bain Worldwide Luxury Market Monitor 2023<\/strong><\/a>, on the other hand, single-brand <\/strong>sales channels have grown three times more <\/strong>than multi-brands <\/strong>over the last five years. It is easy to notice this in Milan, a city where the fashion district is in whole ferment<\/strong>.<\/p>\n

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