Prada Bets on Fewer, Bigger Stores, With Its Milan Galleria as the Model

Luxury shopping is getting more concentrated, and Prada is leading the way. On its earnings call on October 22, Prada Group CEO Andrea Guerra explained that the company wants to be more prominent in a smaller number of cities rather than spread across many, according to reporting by Glossy.

"We're trying to be more prominent in those 10, 12 cities, which make up a great part of the business," Guerra said. In some second and third tier cities in China, he questioned whether the group needed two or three stores when one might be enough. In Italy, where Prada has a large network, he said the company would close stores in two or three secondary cities in 2027 and 2028.

The Galleria as a blueprint

When Guerra wanted an example of where the money is going, he pointed to Milan. The expanded Prada Galleria, unveiled in September, is built around the house's original store from 1913 in the Galleria Vittorio Emanuele II. Guerra called it "a fantastic brand place, but also a great revenue place."

The complex now spreads across eight floors. Glossy reports that the women's boutique has nearly doubled its display space, adding more room for travel, home and beauty alongside clothing and bags. A new underground passage links it to the men's store across the arcade.

More than a shop

What makes the Galleria different is everything beyond the sales floor. Above the Marchesi pastry shop sits Pradasphere, the brand's first permanent exhibition, which traces its history. Higher up, appointment only salons offer private shopping.

There is also an invitation only apartment furnished with antique Italian pieces and photographs by Andreas Gursky. It hosts dinners and special events, giving Prada a place to entertain its most important clients. Guerra hinted that similar projects could follow for Miu Miu and Versace.

The setting carries its own weight. The 1913 store is where the Prada story began, and building the new experience around it lets the house connect its history, its craft and its present in a single address that visitors already seek out when they come to Milan.

An industry moving the same way

Prada is not alone. Kering ended September with 1,614 directly operated stores, a net reduction of 105 since the start of the year, and has raised its annual target for net closures to at least 125. "Having fewer stores, we also can concentrate our CapEx on refurbishment," Kering CFO Armelle Poulou said. Gucci will show a new store concept on Avenue Montaigne in Paris in November.

Hermès offers an early sign that the bigger bet can pay off. Its London Maison at 166 New Bond Street, which opened in June across six historic buildings and 55 rooms, is selling better than expected without taking business from the house's other London stores, CFO Eric du Halgouët told investors.

What it means for clients

For the luxury customer, the message is clear. There may be fewer doors to walk through, but the ones that remain are meant to feel like destinations, with art, food, private rooms and service built in. A visit to Milan's Galleria is now closer to an afternoon out than an errand.

The risk is concentration. When a house relies on a handful of grand addresses, any disruption at one of them is harder to absorb. Still, Prada's results suggest it is choosing its moment well: Glossy notes that Prada brand retail sales rose 1 percent at constant currencies in the latest quarter, a steady showing in a difficult market.

The age of the small luxury boutique on every corner may be fading. In its place, Prada is building fewer, richer spaces where the brand can tell its whole story, one floor at a time.

Source: Glossy, "Luxury Briefing: Luxury brands are betting on fewer, bigger stores as unrest in France forces closures," October 23, 2026.