Italy faces commercial desertification as vacant shops approach 500,000

A report by Confcommercio and the Tagliacarne Institute warns of a structural crisis in Italy’s retail sector, estimating that vacant commercial premises will reach approximately 458,000 by 2026. This phenomenon, described as commercial desertification, is particularly acute in small towns and suburbs, where vacancy rates can exceed 50%. The loss of local shops—including bakeries, grocery stores, and pharmacies—is estimated to cost the Italian economy 4.4 billion euros annually, or 0.2% of its GDP.

The crisis is driven by high rental costs, the rise of e-commerce, and rising fixed expenses. Currently, only about one in three retailers owns the premises in which they operate; by 2026, it is projected that 63.4% of retail businesses will be operating in rented spaces, leaving them highly vulnerable to market fluctuations. The impact is geographically uneven, with higher vacancy rates observed in the South compared to the North-East.

In response, Confcommercio President Carlo Sangalli has called for government intervention to provide resources to municipalities to support local economies and revitalize urban centers. Meanwhile, political debate continues in Parliament, where Democratic Party deputy Andrea Gnassi criticized the rejection of amendments aimed at providing tax incentives for landlords and establishing sustainable rental agreements for small businesses.