Luxury brands from Gucci to Chanel are placing billion-dollar bets on in-store shopping [Video]

While vacancies in retail real estate have surged since the pandemic, luxury brands from Gucci to Chanel are betting big bucks that their in-store experience will draw in shoppers for the long haul.

Kering, which owns Gucci and Saint Laurent, recently spent $1.4 billion on a building in Milan’s Via Montenapoleone, The Wall Street Journal reported. The purchase comes in addition to a $1 billion property acquisition on New York’s Fifth Avenue made by the company in January, the outlet reported.

Representatives for Kering did not immediately respond to a request for comment from Business Insider.

Business Insider previously reported that Kering’s investments are part of a selective real estate strategy meant to lock down highly desirable locations for its suite of leather goods, jewelry, and fashion houses, including Balenciaga and Alexander McQueen.

The Milan property, acquired from Blackstone Property Partners Europe, is one of the largest in Via Montenapoleone — an iconic upscale shopping street — and includes …