Popular clothing brand Benetton to close 400 stores across globe. Here’s why | Mint

Italy’s popular clothing brand Benetton will close its 400 stores around the world as the company is going through an economic crisis, according to a report by Unionrayo. Benetton was founded in 1965 in the Italian city of Treviso.

The move is aimed at tackling high production costs compared to the significant decline in sales since 2012.

However, it is unclear in which countries Benetton will close its stores forever.

“For now, it is believed that they could follow digital strategies and collaborations with influencers to achieve a phoenix-like resurgence,” reported Unionrayo.

In 2023, Benetton’s sales fell from around 2 billion euros to just over 1 billion euros. In the same year, the company reported a loss of 230 million euros, according to a report by NSS Magazine.

During the past 12 months, the fashion retailer has already closed more than 100 of its stores in Italy.

Globally, the brand currently has about 3,500 stores, but it has been in severe crisis for some time, forcing it to significantly reduce the number of locations.

Claudio Sforza, Benetton group CEO, has said that one of the goals for 2025 is to reduce this deficit to 50 million euros in an attempt to reach break-even by 2026, NSS Magazine reported.

Benetton’s ad campaigns

Benetton, one of the most famous Italian fashion brands, is known worldwide for its colourful and affordable clothing.

Its innovative advertising campaigns during the 1990s and 2000s helped it increase sales.

During this period, it also collaborated with photographer Oliviero Toscani, who incorporated social themes such as the fight against AIDS or anti-racism for ads.

Its slogan, “United Colors of Benetton”, brought the company immense popularity.

“Luciano Benetton and Massimo Rendon, co-founder of the brand and CEO respectively, had disagreements over the poor management of the brand, and the dispute only served to further weaken Benetton’s future,” reported Unionrayo.

The Benetton family manage the group through the Edizione holding, which deals in many businesses, with clothing being a secondary sector.