Prada to invest 1 billion euros in its retail strategy

Prada is embarking on a 1 billion euro investment plan over the next five years to revamp its retail strategy and meet the changing preferences of high-end consumers. The Hong Kong-listed Italian luxury group, led by Chairman Patrizio Bertelli, is aiming to offer immersive shopping experiences by integrating various elements of its brand, including fashion, accessories, food, and art, within a single retail space, reported the Financial Times. This move aligns with the growing trend of "experiential shopping" and marks a departure from the traditional retail model.

Despite the challenges in New York's commercial real estate sector, Prada is actively acquiring properties, particularly emphasising the strategic significance of the Manhattan building it bought last year, which has housed its store since 1997. Bertelli stresses that the success of luxury department stores relies on prioritising commercial aspects, products, and customer experiences over mere financial operations.

Prada posted strong retail sales in 2023, with revenue up 17 percent year on year to 4.2 billion euros.

With a focus on major cities worldwide, Prada aims to transform its stores into comprehensive destinations, providing not only fashion collections but also additional services like culinary experiences and cultural exhibitions, fostering a sense of community and brand immersion, the FT said.