Head of High Street Retail at Colliers International Italy

Niccolò Suardi Head of High Street Retail at Colliers International Italy

retailtainment, how the Post-Pandemic age is changing high street retail

With the post-Covid scenario, surprising new opportunities may arise for high street retail. It is not just recovery, but a real transformation of the sector, which, after the forced closures due to the pandemic, is consecrating itself as a symbol of rebirth and the beating heart of cities, thanks to its dynamic fabric of shops and restaurants. This is an unexpected change of perspective for some. True, the state of emergency gave a strong boost to e-commerce. But at the same time, parallel to another interweaving, that between retail and entertainment: retailtainment. This term is still not used much in Italy – but it has actually been in use for some time in mature markets that tend to experiment and innovate, such as the United States – and it is one of the drivers of the new post-pandemic scenario. Just think of the Odeon Cinema project in Milan. A six thousand square metre space, just a stone’s throw from Corso Vittorio Emanuele and Piazza Duomo, which becomes a

«One Of the drivers Of the pOst-pandemic scenariO is retailtainment, played Out in large spaces that Offer the visitOr a unique shOpping experience»

a fundamental consumer need has emerged: the physical shop experience, which the digital retail market cannot replicate. It is wrong to think of the post-pandemic as a struggle between virtual and real. In reality, the process that has been triggered is, if anything, an increasingly strong intertwining of the two universes, online and offline. And it is precisely the phygital – physical and digital – experience that is the real added value, with the Metaverse beginning to peep out. The interweaving of virtual and real is perfect location to offer visitors a unique shopping experience. But the intertwining does not stop there. Besides the weavings of virtual and real, retail and entertainment, another noteworthy combination has also accelerated since the pandemic: the relationship between landlord and tenant. Concepts, best solutions and even the definition of leases are now studied together. And us brokers? Our figure as advisor is definitely being considered more and more important. By the retailers, who need a professional who can go into the details of locations. And by the landlords and investors, who are increasingly demanding knowledge of operations, tenants, brand histories and, overall, the retail sphere. Finally, on the subject of investments, we are gradually seeing that trophy properties play a driving role during crises. This is demonstrated by the important

▲Rendering of Cinema Odeon, Milan ▼The new Fendi Casa in Piazza della Scala, Milan

Colliers International Italy

transaction of Reale Compagnia Italiana’s real estate assets acquired by Blackstone: the heart of the operation is in fact a prominent property in via Montenapoleone. But that’s not all, in Rome we are seeing strong interest from retailers and investors for via del Corso, as well as in other key cities, such as Florence, for the high street. These are places of prestige and favourite destinations of a tourism that may be on the road to recover. Meanwhile, investors’ attitudes are changing: when they approach the high street product, they consider variables that go well beyond the brick and mortar: operations, storytelling and brand/tenant perspectives, ESG factors. Now, along with the walls, brand storytelling and performance also figure as selling points. With our role as advisor becoming more and more fundamental here as well. •