Prada: Huge Flagship in the Works in Milan

Spanning eight levels and covering 5,000 square metres, the new complex brings together men’s and women’s spaces, connected by an underground passage, the Marchesi 1824 pastry shop, the Osservatorio of Fondazione Prada, an exhibition dedicated to the history of the house, as well as private salons reserved for top clients. An apartment designed for the most exclusive events completes the offering.

According to Andrea Guerra, CEO of the group, this apartment concept could be rolled out in several other major cities around the world. Far from being simply another “flagship”, the Milan site is expected to generate around €100 million in annual revenue once fully operational.

The project is highly ambitious and could be seen as a risky move at a time when the global luxury market is slowing. Prada, however, has significant resources to invest. In 2025, the Italian group generated €5.7 billion in revenue, up 9% from the previous year, with net profit reaching €852 million. The company invested €535 million during the year. This financial strength has enabled Prada to invest in its retail network while also absorbing the acquisition of Versace, completed last December for approximately €1.3 billion.

The Galleria illustrates a profound shift in luxury retail. The store is becoming a carefully designed instrument for building customer loyalty, particularly among Very Important Clients (VICs), whose purchasing power is a key driver of growth for premium and luxury brands. Archives, gastronomy, art and hospitality all serve to extend the time customers spend with the brand and take the relationship beyond a simple transaction.

The other factor that has helped make the project a reality is family succession. Miuccia Prada remains at the helm of creative direction alongside Raf Simons, while Patrizio Bertelli continues to chair the group. At the same time, their son Lorenzo Bertelli is playing an increasingly central role. An executive director and the group’s Chief Marketing Officer, the young businessman has also become Executive Chairman of Versace.

As early as 2022, his parents had publicly presented the group’s governance reorganisation as a way of gradually preparing Lorenzo Bertelli to take over the leadership of the company. With a new generation waiting in the wings, the objective is therefore not to “sanctuarise” the group’s heritage, but to bring it to life and use it as a foundation for the next phase of growth.