High rents, flight of customers, lack of space… Will local commerce still be present in the Monaco of tomorrow? This is the question that elected officials, the Monegasque government, and the traders themselves are asking themselves. Several solutions are currently being studied to keep this part of the Monegasque economy alive.
« I am convinced that the retail trade and the artisans of the principality are part of the everyday attractiveness. » Attractiveness: this is the word that is on the lips of all those involved in commerce in Monaco. Alexandre Pasta is not mistaken: this is one of the main points for the survival of small businesses. The one who is president of the Union of Traders and Artisans of Monaco (UCAM) says he has opened his eyes to the situation: “Monaco is in direct competition with large shopping centers like Cap 3 000 in Nice, and there is definitely a flight of customers. » Since its opening in October 1969, this large shopping center which brings together more than 280 stores over 135,000 m2 and boasts a turnover of several hundred million euros, attracting many residents of the region. Including Monegasques who will find brands there that are absent from the principality. “It’s difficult to quantify the number of nationals who go shopping there, but it’s a reality”adds Pasta. The idea of a Monaco-style Cap 3,000 is, for him, “an error not to be made”. He completes: “We have our own Monaco, its charm, its village aspect, its proximity, and its setting. This is what we have to play on. There is another constraint: space. Obviously, over 2 km2we are limited. »
How to attract Monegasques to the country’s businesses?
So, how can we attract Monegasques into their own local businesses? If the Carlo application has saved the furniture since Covid by playing the role of “boosting the Monegasque economy” according to Alexandre Pasta, this application does not seem to have succeeded in preventing the flight of wallets to the Alpes-Maritimes or Italy.
Read also | Carlo application — Corinne Bertani: “Changing everything would perhaps be a mistake”
The reason according to him? Lack of attractiveness, particularly in the retail offering: “We need to get rid of the idea that Monaco is expensive. This is a central point. Many French and Italians do not come here for their purchases, because they consider everything to be overpriced. But that’s wrong. » How to change mentalities? For Alexandre Pasta, this mainly involves local commerce, and also through various products: “We need big brands, because it’s Monaco, and it’s part of the country’s DNA. But we also need small shops. We must help small traders to set up and stay there. » A position which is shared by Corinne Bertani, elected to the National Council and vice-president for trade and attractiveness: “What Monaco is missing today are mid-range brands, particularly in the clothing sector. Whether for men or young people, it is complicated to find clothes at reasonable prices and many are forced to go outside of Monaco. » We find this observation from the elected official in the last public consultation carried out at the request of the National Council among Monegasques, and published in December 2024.
Read also | A consultation to better understand the expectations of Monegasques
In this document, we learn that 66% of Monegasques complain about the quality-price ratio in the city’s shops and that 52% of nationals regret the lack of variety of brands. “We need to find a solution quickly. We don’t have to wait for the arrival of the new Fontvieille shopping center »advances Corinne Bertani.
“We can’t afford to go to this area, it’s too risky. Capping rents is an attack on freedom. On the other hand, I think that there must be discussions and communication between owners and traders, to prevent businesses from closing due to rents”
Alexandre Pasta. President of the Union of Traders and Craftsmen of Monaco (UCAM)
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Rents: main obstacle to installation
If the missing type of business seems identified, the fact remains that a serious difficulty is slowing down its establishment: the amount of rent for commercial premises. For several decades, the price of real estate in Monaco has skyrocketed. With them, it is also the commercial premises that are gaining height. The direct consequence on traders is an increase in rents to be paid. “We must recognize that it is now complicated for small businesses to be profitable if they rent private premises. They either have to do a lot of volume or they have to increase their margins, and therefore their prices.”slips Corinne Bertani. The other consequence of these high rents is the proliferation of luxury brands: “Large brands, and those selling luxury products, can afford to set up in these premises because they have a higher turnover. Which, once again, limits the variety of businesses. » However, many commercial premises still remain vacant. In 2022, 27 premises had been unoccupied for more than three years and ten had been unoccupied for more than two years: “Many owners have not upgraded the standards, which also slows down the installation of major brands who expect to have compliant premises, given the price of rent”explains Corinne Bertani. Is there a concrete solution to limit rents? Not really, at least, not in the private park: “It’s a Monegasque tradition: the private real estate stock is completely free, and we cannot cap prices. This is part of the freedom our country offers. » Same speech with Alexandre Pasta, who does not want this to change: “We can’t afford to go to this area, it’s too risky. Capping rents is an attack on freedom. On the other hand, I think there needs to be discussions and communication between owners and merchants, to prevent businesses from closing due to rents. » So what room for maneuver does the government and the National Council have? It boils down to a solution already in place: the right of pre-emption. This right allows the government to have priority in purchasing premises put up for sale. This solution could evolve in 2025, since the government announced at the end of 2024 that a text will soon be developed to extend the State’s right of pre-emption to commercial premises.
66% of Monegasques complain about the quality-price ratio in the city’s shops and 52% of nationals regret the lack of variety of brands
A city center manager in Monaco?
“This will make it possible to establish more advantageous rents, to allow the installation of small businesses in particular”hopes Corinne Bertani. If this solution proves costly for the principality, it should ensure the presence of traders in premises which, without this initiative, could remain empty. For Corinne Bertani, the expansion of this right is a major step forward: “We have already done it on Boulevard des Moulins. The State preempted a business and it was awarded to a young Monegasque woman. We hope to be able to repeat this option as much as possible to save the business. » Although simple on paper, this method involves a lot of prospecting work: “We will have to go out into the street and contact real estate agencies to find out how long the premises have been empty. You need to know if the owners are sellers. There are then phases of negotiations. This takes time, but it is a solution that can pay off. » The other solution, which has already proven itself in many cities in France, is the hiring of a “city center manager”. This business professional is paid by a municipality to revitalize the city center districts in a few years, in particular by reinventing the streets and relocating businesses. However, this solution does not seem applicable to Monaco, judge Alexandre Pasta, who expresses reservations: “Monaco is not a city in France. Here, there is a real complexity of the terrain, with a network of the country in districts. Each neighborhood has very specific needs, and you have to keep them in mind. Bringing someone from abroad to think about this seems complex. And then, there are already the services of the economic development department which are doing remarkable work. »
“What Monaco is missing today are mid-range brands, particularly in the clothing sector. Whether for men or young people, it is complicated to find clothes at reasonable prices and many are forced to go outside of Monaco”
The law of supply and demand
If the solutions seem limited, Alexandre Pasta nevertheless continues to believe in the future: “I am hopeful that we will reach agreements between traders and owners of commercial premises to negotiate affordable rents. We are thinking about a system that would go in this direction. In any case, we have regular exchanges with the National Council and the government. » Last line of thought for this retail professional: the installation of an elevator between the Condamine district and Monaco-Ville to open up this historic district: “Tourists come primarily for Monaco-Ville, its palace, and its small shopping streets. We must therefore make this area as accessible as possible. But I’ve been talking about this project for a good 20 years already…” Little room for maneuver, owners who have sometimes been absent for a long time, rents which continue to increase… The situation is complex, but what about the owners’ side? Contacted, one of them, who wishes to remain anonymous, specifies: “I inherited this space, and its value has increased more than tenfold. It is now part of my heritage and I cannot afford to sell it off. I therefore prefer to leave it vacant, even if it means letting opportunities pass by, and then rent it at an amount that suits me. » At 45, this owner highlights the law of “supply and demand” when asked if his behavior does not block certain installations. Proof that it will take a few more months, or years, of discussions for the situation to become more fluid.
“I inherited this space, and its value has increased more than tenfold. It is now part of my heritage and I cannot afford to sell it off. I therefore prefer to leave it vacant, even if it means letting opportunities pass by, and then rent it at an amount that suits me”
A commercial property owner
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