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Italian Market: Winter Tourism In Abundance, Yet Shop Footfall Down

The economic update is better than expected with Italy calculating a +0,8% growth for 2023, still low but better than expected as a few months back talk of a recession in 2023 was a big topic.
By Franz Josef Holler

For 2024, the outlook looks even better, but it’s too far to judge and will, and can still, change. But as the GDP growth is slow and energy costs are still high, it’s not an easy time for many companies and businesses. The +0.8% growth is in line with the Eurozone growth which right now sits at +0.9% for 2023. Declining electricity and gas prices certainly help keep our state more stable and our new Prime Minister Mrs. Meloni also plans a Flat Tax for incomes over the next years which should get a clearer overview of the current income tax situations and hopefully help lower incomes to be able to have more money remaining into their pockets. The higher interest rates for borrowing money does slow down a lot of company investments, and purchasing power is still pretty low as people tend to save money in these still unclear and unstable times.

Tourism is still going strong and hotels from North to South are sure that 2023 will again be a very good season, this makes it clear that people are not saving money on traveling and holidays but rather on clothing as many clothing stores, online stores and especially skate shops are struggling. Over the last 6 months many retailers decided to close their doors or are in the process of closing their businesses for many different reasons.

A store owner from the Milan area who wants to stay anonymous and who is in the process of closing his board store with a history of 15+ years in the game names a few reasons: Raising energy costs, higher interest rates, shop assistants are harder to find and motivate, purchasing power from customers is reduced and our suppliers make it harder to stay in business as the desired goods we want to buy are harder to get than ever. These factors combined, mean I will close permanently in the near future.

Many retailers struggle with low profits and have a hard time to stay in business. Specializing is now key for our boardsports retailers and research for new brands is a new key element, also knowledge about what you sell is crucial.

As skate hardgood stock levels are high, so are surf good stock levels in both wetsuits and boards as the last 6 to 12 months saw turnover declining. Starting boardsports this year will give beginners a chance to buy good material at a very reasonable price so boardsports technical gear will not suffer inflation but will see good discounts on the shelfs during this 2023 season.

Polar Skate Co. still performs very well on the shelves of many stores and so does Last Resort Lab for skate shoes, just to name a few. Younger brands are in general doing quite well in skate shops, compared to their older much more consolidated competitors. Vans is still solid in the boardsports world but has lost some ground over the last year.

Overall, the younger generation seems very hungry for new brands such as Wasted Paris which is a skate brand from Paris inspired from 90´s skateboarding with a dark twist. Brands that turn heads and bring back the early stages of skateboarding. A must is oversize cuts, baggy pants and heavier cottons, some key elements to be successful right now. The online pace of growing adjusted a lot and online stores are reducing their budget quite a lot during this 2023, a year still full of surprises, new beginnings but also the end of an era for some retailers and brands.