Milan, Italy

European Retail City Profiles 2016

Milan, Italy Milan is recognised as one of the most famous fashion centres in the world and is Italy’s industrial, commercial and financial heart. The city has become an increasingly attractive location for international retailers in recent years, and now is Europe’s fourth most attractive retail city and ranks 21st out of 140 in our global index. Milan’s economy is dominated by the service sector and is the preferred location for multinational headquarters, hosting a considerable workforce. Milan also has a large student population and the great number of fashion and design events add to more conventional business tourism, meaning the city has a sizeable and varied consumer base.

High street Milan has four distinct, but very affluent, shopping districts. The first, situated in the city centre, is the upmarket area around Via Monte Napoleone, including the ‘Quadrilatero della moda’ luxury district. Nearby is the more mainstream area centred on the Piazza del Duomo, encompassing the pedestrianised Corso Vittorio Emanuele II and Via Torino and luxury department stores; la Rinascente and the Excelsior. The third is the new Porta Nuova district which hosts designer boutiques, innovative stores and high density offices and residential space. More recently, Brera has consolidated its position as the beauty district, with several cosmetics brands opening including MAC Cosmetics, CAUDALIE, Skin Inc, Aesop and Diptyque. A positive retail sales growth outlook and Expo Milano have fuelled retailer demand across the city, pushing prime rents upwards. Recent market entrants include Victoria’s Secret, Fendi and Piaget. Due to the lack of market transparency and the fact that a wide range of units are classed as ‘prime’, it often makes rental levels hard to fully establish.

Shopping centres The best Milanese shopping centres lie outside the city. The new 90,000 sqm landmark Il Centro has recently opened in Arese, North West of Milan, and has become the city’s first real regional shopping centre. In 2017, the Westfield Group is opening Italy’s largest shopping centre to the East. The 170,000 sqm scheme will also be anchored by Galeries Lafayette. After the 2010 refurbishment of Fiordaliso, its performance has improved greatly, hosting one of the best performing Apple stores in Italy. Carrefour Milanofiori, and the nearby retail park, creates a critical mass to the South, serving a large working population. Shopping centre Il Centro Carrefour Milanofiori Carosello Auchan Ai Laghi Carrefour Limbiate Fiordaliso Metropoli Source: JLL 2016

Opening year

GLA (sqm)

2016 2004 1997 2000 2006 1992 1999

90,300 54,300 52,400 46,200 38,700 34,300 30,700

30 min drive time population

Prime rent (sqm/year)

2.8m

€4,300

Rental growth outlook

Prime rental information for Corso Vittorio Emanuele II (excluding key money) Note: Population based on 30 minute drive time study area.

Key indicators Milan Population (‘000s No.) Purchasing Power/Capita (€) GDP Forecast 2016-2020 (% pa) Retail Sales Forecast 2016-2020 (% pa) Global CBRA Rank (Out of 140 cities)

2,810 22,530 1.8 1.5 21st

Source: JLL, Michael Bauer Research GmbH 2014, ESRI 2015, Oxford Economics (April 2016) Global CBRA Rank = Global Cross Border Retailer Attractiveness Rank Note: Population and Purchasing Power/Capita based on 30 minute drive time study area

Key retail entrants Aesop Fendi Kipling

Piaget Skin Inc Victoria’s Secret

Location

Key tenants

Edge of Town Edge of Town Edge of Town Edge of Town Edge of Town Edge of Town Edge of Town

Iper, Primark, Zara, H&M, MANGO, Viridea, Media World Carrefour, Media World, Zara, Hollister Co., Conbipel Carrefour, Zara, Apple, H&M, Hollister Co., Superdry Auchan, Media World, DECATHLON, OVS Carrefour, Media World, H&M Iper, Apple, Media World, H&M, Zara, Gap, Piazza Italia Ipercoop, Media World, Longoni Sport

Annual visitors 7.0 m 8.6 m 9.2 m 6.9 m 8.9 m 6.1 m Copyright (c) JLL IP, INC 2016

Dolce Dior & Gabbana Burberry Hermès Moncler Dior Dolce & € 5,000 Burberry Gabbana Prada Dolce & Piaget Camper Gabbana Céline Prada Teatro Giorgio COS Gucci alla Scala Armani Prada Fendi Valentino Museo Salvatore Ferragamo Louis Vuitton Teatrale Moncler Bulgari alla Scala Timberland HUGO BOSS € 10,000 Abercrombie & Fitch Salvatore Boggi Ferragamo Milano London Nespresso Warwick Diesel Massimo Dutti Street adidas Gucci Geox (Head Offic GUESS KIKO MILANO € 4,300 Prada Giorgio Armani Swarovski H&M Louis Vuitton Nespresso United Colors of Benetton Galleria Vittorio Emanuele II Zara le II Foot Boggi Milano The Brian Max & Barry Locker Swarovski nue Mara a Em Gap & Other o i r Prada o Pull&Bear Stories so Vitt Furla Massimo Dutti r Sephora o C la Rinascente MANGO Bershka Excelsior Tiffany & Co. Piazza Del Duomo Milano Superdry

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JLL Contacts James Dolphin Lead Director International Retail +44 (0)20 7852 4623 [email protected]

Monica Cannalire Head of Retail Agency Italy +39 (0)02 8586 8617 [email protected]

Copyright (c) JLL IP, INC 2016 No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of JLL. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them.

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JLL Contacts James Dolphin Lead Director International Retail +44 (0)20 7852 4623 [email protected]

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Shopping Centre Development Department Store

Fiordaliso

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Key Retail Area

Monica Cannalire Head of Retail Agency Italy +39 (0)02 8586 8617 [email protected]

Copyright (c) JLL IP, INC 2016 No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of JLL. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them.

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