Economy
THE PROPOSAL •
A step in defence of trade. Because, without it, cities lose their vitality
The closure of shops is impoverishing neighbourhoods and emptying historic town centres. A proposal for an alliance between businesses, local councils and the government to combat the decline of high streets, revitalise vacant premises and boost local economies

(Photo: Getty)
A city is not made up solely of streets, buildings and squares. It is made up of people, economic activities, services and relationships. For this reason, when a shop closes, it is not just a business that disappears; a part of the city dies. In historic centres and on the outskirts, shuttered shops impoverish the fabric of communities. Figures compiled by Confcommercio’s Research Department reveal a worrying trend. Between 2012 and 2025, 156,000 retail businesses disappeared in Italy, and today there are over 460,000 vacant commercial premises – roughly one in six – which remain empty for an average of more than seven years. The loss of rental income is estimated at 4.4 billion euros a year. But there is a cost that no budget fully captures: the loss of services, safety, opportunities for social interaction and quality of life. And in small villages, essential services such as grocery shops, newsagents and chemists are also disappearing. This is why the decline of high streets is no longer – and not merely – a problem for the retail sector and Confcommercio. It is a matter of citizenship.
This realisation has given rise to Confcommercio’s Cities project, designed to support local economies and promote urban regeneration, making cities more attractive, safer and more liveable. This objective was relaunched a few days ago in Bari with the ‘inCittà’ initiative: a shop is more likely to stay open if the neighbourhood is inhabited, safe, accessible and bustling. And, in turn, that shop brings the neighbourhood to life. Therefore, isolated measures targeting individual businesses are not enough: we need a strategy that puts people back at the centre. In this challenge, innovation and artificial intelligence can make an important contribution, but they must be managed in a way that always puts people first: because there can be no true urban regeneration without human regeneration. This gives rise to the concept of the ‘city as a common good’ – an asset belonging to everyone, which requires shared responsibility. Its vitality cannot depend solely on local authorities, nor on individual economic sectors. Institutions, citizens and businesses share the same spaces and the responsibility to contribute to the well-being and cohesion of communities. With this in mind, Confcommercio wishes to take a further step: from representing businesses in cities to truly representing the cities themselves. It does not intend to replace those who govern them, but to participate in the decisions that shape their future. Entrepreneurs are also civic actors: they know the streets and the needs of neighbourhoods, provide services and contribute to social cohesion every day.
This is why we wish to strengthen the partnership between the public and private sectors, starting with our collaboration with ANCI and the mayors, to whom we propose that, together with our local associations, we draw up Local Action Plans for local economies: revitalising the most deprived areas, reopening vacant premises, encouraging new businesses, and improving public spaces and accessibility. We call on the government to establish a national fund to support local authorities engaged in these plans. The flat-rate tax on commercial rents can also help combat the decline of high streets, provided that the tax relief translates into more sustainable rents for businesses. This is the spirit behind ‘Key Day’, which Confcommercio is promoting across Italy on 16 November. Our local associations will meet with mayors to present concrete proposals and hand over the keys to shops that have closed. A symbolic gesture, but one with three meanings: to reopen closed businesses, to help existing ones stay in business, and to create the conditions for new ones to emerge. An invitation, therefore, to work together, because defending our shops means defending the future of our towns and cities.
Carlo Sangalli, President of Confcommercio