While this trend has been seen before, since the start of 2022 well-established brands have been launching flagship stores in more advantageous locations with greater visibility and higher footfall. In Madrid’s Zona Centro, the main players embracing this initiative are Grupo Inditex, Uniqlo, and Primark. Recently, Zara inaugurated its store of 7,700 sq m, the largest in the world, while Stradivarius set up a 1,200 sq m premises, both on Plaza de España. Meanwhile, Lefties opened its biggest branch worldwide on Calle Montera, with 4,000 sq m.

For its part, Uniqlo unveiled a 2,200 sq m shopping unit on Gran Via, with multi-brand concept store WOW launching its first physical store to occupy an entire 5,500 sq m commercial building on the same street. Moreover, Urban Outfitters is set to establish its flagship store on the former site of Cine Rex, while Nike is expected to return to Gran Via to take up 1,200 sq m.

In upscale Barrio Salamanca, Primark has plans to open a 4,500 sq m premises on Calle Conde Peñalver, while WOW is expected to unveil its second brick-and-mortar establishment on Calle Serrano. On this street, we can also highlight the arrival of CUPRA’s City Garage (through the consultancy advice of Savills), which represents the entry of the automotive sector into Madrid’s prime retail pitch.

Outside Madrid, one of the most prominent launches was Zara’s 5,000 sq m store in Valencia on Don Juan de Austria. Additionally, Grupo Inditex is planning to secure two sizeable commercial buildings previously occupied by El Corte Ingles in Cordoba and Seville. In Barcelona, JD Sports is set to open its largest branch in Spain, with 2,500 sq m, on Calle Portal del Angel.

Also in Barcelona, home furniture giant Ikea has recently inaugurated a 1,525 sq m premises on Avenida Diagonal, indicating that fashion is not the only sector interested in opening megastores. Another brand following this trend is perfumery retailer Primor, with its new flagship store on Gran Via in Madrid.

So why the return of megastores, and why do retailers invest so heavily in them? With the continuing increase in online sales in recent years, brands have had to adapt to the changing consumer behavior. Online retail offers consumers a wide array of products at the click of a button, providing a more convenient and time-saving alternative to traditional shops. In response to the e-commerce juggernaut, retailers are therefore returning to the megastore format.

By concentrating on one huge establishment in a single location, megastores can provide the customer with a one-stop in-store experience, replete with services that engage all five senses in a spacious and welcoming environment.

Moreover, this expansion model is changing at an accelerated rate. Leading brands are increasingly seeking out opportunities to secure iconic premises, rather than simply growing in number with several smaller shops.

Further adapting this concept to current trends, megastores are incorporating modern technology in the form of digital fitting rooms, digital signage, Augmented Reality apps, click-and-collect counters, Pay&Go checkouts, etc.

In the case of Lefties, their new establishment on Calle Montera is complete with in-store coffee shop Bombon Boss. The idea behind this move is to diversify their offering; a unique selling point few physical stores currently provide and a service online stores are unable to compete with.

Are there retail opportunities for these giant stores in prime location? Securing premises of more than 1,500 sq m requires knowing the market, relentless perseverance, and having the right contacts. Vacant cinemas, conglomerations of smaller stores, and off-market sites are just some potential options. The retail consultant who can sniff out opportunities for brands searching for megastores is sure to attain megarewards.