The webinar “Retail 2021: values, trends and new concepts” organized by WCG – World Capital Group was held on Tuesday, November 30.
Authoritative players in the retail sector took part in the event, such as Maximum Torti, Secretary General Italian Fashion Federation – Confcommercio, Blessed Chiara Conticelli, Managing Director of Kryalos, Fabio Primerano, Executive Chairman of Ciesse Piuminic, Alessandro Crosato, Owner and Fashion Design Director of Moscow Clothing, Marco Bognetti, Safety Manager of Leroy Merlin, Lorenzo Mian, Country Digital Leader of Decathlon.
The Italian retail market was one of the sectors most impacted by the effects of Covid.
Focusing on specific product categories, we note that during the pandemic, clothing prices dropped dramatically below those of the food sector.
Since the first months of 2021, however, we are witnessing a slight recovery in fashion market values, especially in Northern Italy, with Milano and Rome among the most appealing Italian squares.
This is the scenario that emerged from the introduction given by Francesca Scarlatti, Senior Real Estate Consultant Retail & Capital Market at World Capital, who presented the real estate values recorded in the new Retail Fashion & High Street Report produced by World Capital's Research Department together with Federazione Moda Italia-Confcommercio.
Remaining in the fashion sector, according to data collected by the Italian Fashion Federation, during the pandemic period a birth-death balance of 4.485 points of sale was recorded , with an estimated over 10.000 store closures and the loss of over 30.000 employees.
Regarding industry trends, e-commerce, environmental awareness (second-hand and new services), the aging population, and the fragmentation of family models were already underway in the pre-pandemic period.
Today, hyper-connectivity, restrictions on movement and activity (such as those on fashion stores, which were closed by decree for 138 days, equal to 35% of their operating capacity), combined with the lack of shopping tourism, the use of smart working, and social distancing have changed technological, social, and consumer habits, generating new trends.
The post-pandemic era also speaks of a rediscovery of local shops, the pursuit of health safety within stores, and a process of downsizing and remodeling spaces, as well as a valorization of the element of comfort.
As far as real estate investments are concerned, the retail market certainly represents an interesting asset class to invest in. This is confirmed by the project presented by Kryalos: an urban redevelopment of a part of Corso Buenos Aires in Milano and Piazzale Loreto, with the opening in December of a section of the 8.000 m2 platform dedicated to retail.
Shifting our attention to fashion brands, their testimonies revealed that sustainability has gained significant traction in the retail world today.
An example of this is “ Mission to Green ”, the project presented by Ciesse Piumini, not a simple inspiration, but a real way of being and thinking about collections in an increasingly sustainable way for the planet.
Therefore, space is given to recycled and eco-sustainable materials, with the aim of updating the production cycle with an eco-friendly perspective.
In addition to sustainability, it is important for fashion brands today to also focus on product transparency and territorial responsibility.
For this reason Mosca Clothing has introduced responsible labelling, an interactive label where those who buy their garments can check their entire supply chain and the suppliers used for the production of the products.
Not only sustainability and transparency, but also safety within stores, a trend certainly strengthened by the pandemic, but one that some brands have always embraced, just like Leroy Merlin.
When managing specific goods, the need arises to safely store all the products present inside the store.
This safety extends not only to the flow of goods, but above all to the flow of people, with the introduction of anti-contagion measures such as social distancing, disinfectant gel, the use of gloves, and spaced out aisles.
The webinar concluded with an in-depth analysis by Decathlon on how physical store and e-commerce communicate.
The digital component is now fundamental to the purchasing process, a trend that is growing rapidly, especially in the first months of 2021.
Digitalization and the physical nature of the store must therefore go hand in hand, giving consumers the opportunity to order products online, choose the most convenient store to reach, and collect the goods free of charge.
To move in this direction, Decathlon has developed “ship from store”, that is, the possibility for stores to prepare and fulfill online orders, which will then be taken care of by a courier, for their customers.
"As we've seen from the data, fashion stores have been drastically impacted by the pandemic ," says Massimo Torti, Secretary General of the Italian Fashion Federation (Federazione Moda Italia – Confcommercio ). "Today, to relaunch their businesses, retailers must conduct a contextual analysis, measure their performance, understand the business models generated by new consumer habits and attitudes, and transform complex situations into development opportunities with phigital sales strategies, both online and offline."
" Although Covid had the greatest impact on the retail asset class, accelerating certain events such as e-commerce, it was understood that the shock was not as severe and the resilient side of the sector was confirmed, " comments Benedetta Chiara Conticelli, Managing Director of Kryalos . " We believe we will see a retail bounce back in 2022 that will bring positive results."
“Sustainability is a fundamental element for a fashion brand that wants to embrace
a philosophy of respect for nature and the world around us - declares Fabio
Primerano, Executive President of Ciesse Piumini however, undertake this
road implies a constant and long-term commitment. Ciesse Piumini has taken a
commitment to respecting its customers, which starts with the choice of suppliers aligned with this
philosophy, to arrive at a product that combines excellent quality with a search for
new materials and eco-sustainable production processes. This is our challenge, our "Mission To Green", as we have named this path. Last but not least, with a view to
complete transparency towards customers, we have created dedicated labelling
precisely to our “Mission to green” to indicate the garments that are the result of
this choice, beyond imagination.”
“Today the customer is no longer sporadic, today he is a follower who wants to know who the company is, how the product was made – declares Alessandro Crosato, Owner and Fashion Design Director of Mosca Clothing – This is why we must provide honesty and transparency to consumers, telling everything there is to know behind the finished product.”
"When we think about safety, we think about the commitment our company has always made, which we translate into a clear policy, ensuring everyone is aware that safe working is paramount, " comments Marco Bognetti, Safety Manager at Leroy Merlin . " Safety is not just a matter of the workplace, but also for our customers who shop in-store."
"In our industry, change is the order of the day. Physical stores and e-commerce must evolve synergistically to meet customer needs. - declares Lorenzo Mian, Country Digital Leader of Decathlon For this reason, retailers must continue to invest both digitally, implementing new services, and physically, remodeling their store spaces: the goal is to ensure a complete and seamless omnichannel shopping experience.”
“The pandemic has affected the retail real estate market, but despite this, in recent months, property values have seen a slight recovery, especially in the North Italy – declares Francesca Scarlatti, Senior Real Estate Consultant Retail & Capital Market at World Capital When choosing a real estate investment, the location of the shop plays a fundamental role and for this reason the World Capital Research Department has identified a tool capable of highlighting the most interesting areas for opening a retail shop in Milano. "
Click here to rewatch the webinar