Bottega Veneta is saying arrivederci to its storefront on the Magnificent Mile, joining the long list of high-end retailers to exit the famed shopping strip.
The Italian luxury fashion house is cutting its footprint by roughly half in a move from 800 North Michigan Avenue to a 5,000-square-foot space at 41 East Oak Street on the Gold Coast, Crain’s reported.
Bottega’s departure prolongs a brutal stretch for the Mag Mile. With the pandemic igniting an increase in online shopping, retailers have been forced to vacate their storefronts amid historically low demand. Household brands like Banana Republic, Gap, Uniqlo, Timberland and Macy’s have all left Michigan Avenue, contributing to a vacancy rate of about 30 percent.
There’s been an inkling of hope for the Mag Mile, as companies like Alo Yoga and Aritzia have signed leases since last year, but departures continue to happen. Telecommunications giants Verizon and T-Mobile have vacated a combined 38,000 square feet on Michigan Mile, and AT&T plans to ditch its 10,400-square-foot space this month.
Bottega’s new store on Oak Street is owned by Fred Latsko, who’s suing a Parisian handbag maker, Maison Goyard, that was once committed to leasing the space itself before it allegedly strung Latsko along with its renovation plans at the site. Goyard dragged its feet on settling on a design and never moved into the space despite its agreement with Latsko, according to a lawsuit against the high-end bag maker the landlord filed. It’s unclear if the Bottega lease will affect the legal dispute.
Bottega, led by CEO Bartolomeo Rongone, is one of a crowd of retailers flocking to Oak Street. Burdeen’s Jewelry, for instance, opened a two-story location at 120 East Oak earlier this year. Some real estate players predict that Oak Street could become the new mecca for shopping in Chicago, as it offers larger storefronts for luxury brands in a safer part of the city.
— Quinn Donoghue
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