Italian retail in recovery mode as 10 new malls are planned

Italian retail may be turning a corner after the pandemic: according to the latest figures there is now a pipeline of ten new shopping centres set to open between 2021 and 2023, marking a change from the closures of 2020.

This year four shopping centres closed and four new ones opened, which is an improvement on 2020, when there were no new openings and six malls had to close their doors. As Osservatorio Confimprese Retail Real Estate figures show, momentum is picking up in the sector.

This year three malls will become bigger, adding more space for shops and F&B, and before 2023 there will be ten brand new openings. Of these, 40% will be in the city of Milan, which continues to be by far the most dynamic real estate market in Italy.

There are 996 shopping malls in Italy and when retail parks and factory outlets are added the total increases to 1,309 centres. In the last few months consumers have slowly but surely re-discovered the joy of shopping

“In the first few weeks of October we’ve seen an increase in footfall from -20% to -10% compared to pre-pandemic times,” said Mario Resca, president, Confimprese.

“This is a signal of Italians’ confidence in the country’s recovery and their renewed desire for in-person shopping. We now have to sustain and encourage this trend.”

The data show that, despite the increase in vacancy rates during the pandemic and the number of closures, rents have remained unchanged.

F&B is described as “retail’s rising star”, with an increasing number of successful openings which have helped keep vacancy rates lower than they would otherwise have been. Two out of three plan to increase their outside space to attract more customers, while 56% are developing their take-away services alongside the eating-in space.

Fashion and beauty, on the other hand, are the segments that have suffered the most: in the last two years 81 beauty stores had to close and only 22 opened, while 136 fashion retailers closed and 112 opened.

All sectors are planning to open more stores inside shopping centres and 92% of retailers will opt for those malls that offer an innovative experience.