L'Italo-Americano

THURSDAY, NOVEMBER 28, 2024 www.italoamericano.org 12 L'Italo-Americano NEWS & FEATURES TOP STORIES PEOPLE EVENTS 2 . 5 % y i e l d h i g h l i g h t s t h e high level of confidence in the street's long-term value. T h e f a m o u s M i l a n e s e street's achievement comes along with broader changes i n t h e r a n k i n g s o f i c o n i c global shopping streets: New York's Upper Fifth Avenue, now second on the list, main- tains average rents of $1,913 per square foot annually, while London's New Bond Street reclaimed the third spot with a 13% rise in rents, reaching $1,762 per square f o o t . M e a n w h i l e , P a r i s ' s Avenue des Champs-Élysées remains in fifth place, closely followed by Tokyo's Ginza district, which experienced a remarkable 25% year-over- year rental growth. Clearly, and despite the rise of e-commerce, premier shopping streets continue to thrive, a success rooted in the tactile, immersive experi- ences that brick-and-mortar stores offer. Physical stores are like the expressions of a brand's identity, and create a t a n g i b l e c o n n e c t i o n w i t h customers that digital plat- forms cannot replicate. Lux- ury brands have embraced this reality by integrating digital strategies with physi- c a l r e t a i l , e n s u r i n g a n omnichannel approach that enhances customer engage- ment. High-quality retail locations remain critical for gance. Post-World War II, V i a M o n t e n a p o l e o n e emerged as a global fashion hub, home to boutiques of world-renowned designers, which reinforced Milan's sta- t u s a s a f a s h i o n c a p i t a l . Today, landmarks such as C a f f è C o v a , w h i c h w a s established in 1817 and relo- cated to the street in 1950, p r o v i d e a w i n d o w i n t o Milan's rich culinary tradi- tions. Similarly, Palazzo Melzi di Cusano, a stun- ning example of Neoclassical architecture, adds historical grandeur, reminding visitors of Milan's aristocratic past. B a c k t o c o n t e m p o r a r y times, the surge in rental p r i c e s o n V i a M o n t e - napoleone sparked signifi- cant discussions about its broader economic implica- tions. While the rising rents underscore the street's eco- n o m i c v i t a l i t y , t h e y a l s o raised concerns about the affordability of prime retail spaces for smaller business- es. Local enterprises, partic- ularly those catering to mid- d l e - c l a s s s h o p p e r s , f a c e potential displacement as global luxury brands domi- n a t e t h e l a n d s c a p e . T h e area's real estate market like- wise saw extraordinary activ- ity, with investors drawn to the steady value of its prop- erties. For example, Black- stone's sale of a store at a presenting exclusive collec- tions and building lasting r e l a t i o n s h i p s w i t h a n increasingly discerning clien- tele. Ultimately, it appears that Via Montenapoleone's rise reflects broader global trends i n t h e e v o l u t i o n o f m a i n s t r e e t s , w i t h C u s h m a n & Wakefield's report emphasiz- i n g h o w t h e y c o n t i n u e t o play vital roles in both local and global economies, serv- ing as hubs for commerce, culture, and social interac- tion. Although challenges s u c h a s i n f l a t i o n , r i s i n g interest rates, and shifting consumer behaviors pose risks, main streets have been showing remarkable adapt- a b i l i t y , a n d r e t a i l e r s a r e leveraging these locations not only for sales but also for b r a n d i n g a n d c u s t o m e r experience, ensuring their relevance in an increasingly digital world. As the retail landscape evolves, super-prime streets like Via Montenapoleone are expected to remain at the forefront, driven by demand from luxury brands and the diversification of tenant sec- tors. Alongside high fashion, categories such as wellness, cosmetics, and sportswear are making their presence f e l t , s i g n a l i n g a b r o a d e r appeal for these iconic loca- tions. The United Kingdom's exit from the European Union also played a role, prompting m a n y l u x u r y r e t a i l e r s t o pivot their focus from Lon- don to Milan, seeking stabili- ty within the EU market. Furthermore, an influx of a f f l u e n t i n t e r n a t i o n a l tourists, particularly from non-EU countries, bolstered spending along the street. T h e a v a i l a b i l i t y o f V A T r e f u n d s c h e m e s f u r t h e r incentivized high-value pur- chases, making Via Monte- napoleone an irresistible destination for wealthy trav- elers. But Via Montenapoleone has a rich story to tell, that goes beyond its modern-day prominence: its origins date back to the Roman era, with its foundations linked to the city wal l s constr ucted by E m p e r o r M a x i m i a n . I t s n a m e d e r i v e s f r o m t h e Monte Camerale di Santa Teresa, a financial institu- tion established in 1783 to manage public debt. The ref- erence to "Napoleone" hon- o r s , o f c o u r s e , N a p o l e o n Bonaparte, in a reflection of Milan's historical connection to his reign. In the early 19th century, the street underwent signifi- cant redevelopment in the Neoclassical style, attracting aristocratic residents and earning a reputation for ele- M i l a n ' s V i a M o n t e - napoleon e achieved an extraor- dinary milestone: it has been crowned the world's most expensive shopping street in November 2024, according t o C u s h m a n & W a k e - f i e l d ' s M a i n S t r e e t s Across the World report. This accolade places it ahead of New York's prestigious Upper Fifth Avenue, a posi- tion the latter had dominated for 34 years. A remarkable achievement, which empha- sizes Milan's pivotal role in the global luxury retail mar- ket and underlines the time- less popularity of Via Monte- napoleone, which continues to attract high-end brands and affluent clientele from across the world. The Main Streets Across the World report is a key b e n c h m a r k i n t h e r e t a i l industry. Launched in 1988, it evaluates and ranks the most expensive retail streets based on prime rental values. I t s 2 0 2 4 e d i t i o n o f f e r s a comprehensive analysis of 138 prime shopping destina- tions in 92 cities worldwide, s h e d d i n g l i g h t o n g l o b a l retail trends and the eco- nomic health of iconic retail locations. This year, data s h o w h o w V i a M o n t e - n a p o l e o n e h a s o u t p a c e d g l o b a l c o m p e t i t o r s , w i t h p r i m e r e n t s s u r g i n g t o €20,000 per square meter a n n u a l l y , a n e a r l y 3 0 % increase over two years. Fac- tors such as high demand for luxury retail space, limited availability, and the euro's appreciation against the US d o l l a r h a v e d r i v e n t h i s growth. We should note that the ascendancy of Via Monte- napoleone to the summit of the global retail hierarchy is not accidental; Milan strate- gically positioned itself as a hub for luxury through tar- geted marketing campaigns and favorable tax policies, a t t r a c t i n g i n t e r n a t i o n a l brands eager to establish their presence in Europe. CHIARA D'ALESSIO The Versace flagship store in Via Montenapoleone (Photo: Balazs Sebok/Dreamstime). Bottom left, the street's sign (Photo: Andrei Antipov/Dreamstime) Milan's Via Montenapoleone outshines Fifth Avenue in global retail rankings

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