Prada Expands and Revamps Milan Flagship to Entice Luxury Shoppers
Prada’s Milan Flagship: Renovation, Expansion, and Strategy
By Elisa Anzolin
Historic Location and Store Transformation
MILAN, Sept 15 (Reuters) - Italian luxury group Prada has renovated and expanded its historic premises in the heart of Milan to strengthen ties with its wealthiest clients and attract new customers, Chief Executive Andrea Guerra told Reuters.
Prada already operated both a menswear and a womenswear store in Milan's Galleria Vittorio Emanuele, the elegant 19th-century shopping arcade, with the women's store sitting at the original site of the Fratelli Prada boutique.
Connecting Spaces and Artistic Collaborations
Prada has renovated the two stores and connected them through an underground tunnel which on Tuesday hosted some silver-plated Prada handbags reworked by British artist Damien Hirst as well as the "Chandelier" party dress worn by Carey Mulligan in Baz Luhrmann's film adaptation of "The Great Gatsby".
Exclusive Amenities and Customer Experience
The compound, which also connects to the Marchesi patisserie Prada owns next to its men's store, includes a permanent exhibition room, space for highly personalized shopping-by-appointment and an apartment to host private dinners and special events.
"It is a way to show our DNA, our roots, our way of thinking and point of view," Guerra said.
Financial Goals and Market Positioning
Prada hopes the complex, which spans eight levels, can generate €100 million ($115 million) in annual revenue, he added. Prada, whose sales totalled €5.7 billion last year, didn't disclose the size of the investment.
Focusing on Wealthiest Clients Amid Sector Shifts
The opening comes as luxury groups increasingly focus on their wealthiest customers, who continue to spend despite a broader sector slowdown, with demand shifting more towards experiences.
"The 'experiential' part of the store, the part where we host our clients, has become more important," Guerra said, pointing not only to private spaces but also to venues such as Prada Caffè.
"We have opened 'apartments' in many cities around the world and we will certainly open them in the world's top 25 capitals," he added.
Appealing to Aspirational Buyers
While pampering its richest customers, Prada will still try to attract also aspirational buyers with items sold at entry-level prices, which it intends to keep relatively stable, Guerra said.
($1 = 0.8663 euros)
(Reporting by Elisa Anzolin; Editing by Valentina Za and Keith Weir)
