United Colors of Benetton is closing prominent stores across Europe as the Italian fashion company continues a major restructuring designed to reduce expenses and restore profitability. Recent closures in Paris and London mark another setback for the retailer, which became internationally recognized for its colorful clothing and advertising campaigns.
The company's flagship store at 3 Place de l'Opéra in Paris reportedly closed on September 30, 2026, after approximately 25 years. Its London flagship at 89 Oxford Street closed on October 18, ending an eight-year presence at one of Britain's best-known shopping destinations.
The shutdowns come as Benetton Group works to recover from years of financial losses and declining sales. Although its losses have fallen significantly since 2023, the company continues to face difficult decisions about which stores, manufacturing operations and distribution partnerships to maintain.
Paris and London Lose Prominent Benetton Stores
The Paris flagship occupied three floors and covered more than 10,700 square feet near the city's historic opera house. Its closure removes a highly visible retail location that had served shoppers for roughly a quarter-century.
TheStreet reported that Benetton continues to operate two other stores in Paris, located at 147 Rue de Rennes and 71 Rue de Passy. These smaller locations preserve a physical presence in the French capital despite the departure from Place de l'Opéra.
London experienced a more significant reduction. The Oxford Street store covered approximately 16,000 square feet and was reportedly the company's last remaining physical retail location in the United Kingdom.
TheIndustry.fashion confirmed that the London flagship's final trading day was October 18. The store had opened in March 2018 as part of an effort to strengthen Benetton's presence in the competitive British retail market.
Its design included an extensive knitwear area, interactive displays and a prominent entrance intended to attract shoppers along the busy commercial street. The location was originally presented as a centerpiece of the company's British expansion.
Benetton once operated nearly 60 stores across the United Kingdom. The closure of its remaining Oxford Street location illustrates how sharply that network has contracted over the past decade.
However, the disappearance of physical stores does not necessarily mean Benetton is abandoning British customers. Its products remain available through online channels, and the company has not announced a complete withdrawal from the UK market.
Financial Losses Fall as Revenue Continues to Decline
Benetton's restructuring has produced substantial improvements in its reported financial losses. The group recorded a net loss of approximately €33 million in 2025, compared with €100 million in 2024 and €235 million in 2023.
The latest figures represent a reduction of about 67% from the previous year's loss. They also indicate that the company's cost-cutting program has significantly improved its financial position.
However, revenue has continued to move in the opposite direction. Sales fell from €1.015 billion in 2023 to €917 million in 2024, before declining further to approximately €792 million in 2025.
The 2025 revenue figure represents a decrease of roughly 14% from 2024. That reduction demonstrates that Benetton is becoming financially leaner while also operating a considerably smaller business.
Italian news agency ANSA reported in May 2026 that Benetton was targeting a return to break-even during the year. The company had also reduced its net financial debt, including lease liabilities, from approximately €411 million at the end of 2024 to €313 million at the end of 2025.
Lower losses and debt provide some financial relief, but they do not establish that the restructuring has succeeded. Benetton must eventually stabilize revenue and generate sustainable profits without depending on continued reductions in its operations.
CEO Claudio Sforza Leads Turnaround Strategy
Chief Executive Officer Claudio Sforza took charge in June 2024 as Benetton faced growing financial pressure. His appointment followed a period of substantial losses and concerns about the company's ability to compete with faster-moving fashion retailers.
Sforza introduced a restructuring strategy centered on closing unprofitable stores, reducing operating expenses and simplifying the company's distribution network. Earlier plans called for hundreds of retail closures, with approximately 500 locations identified as possible targets.
The company's current global network contains approximately 2,700 stores across more than 80 markets, according to Benetton Group's corporate website. That is substantially smaller than the roughly 3,500 locations cited in reports surrounding the restructuring.
The reduction involves both company-operated stores and relationships with independent retail partners. Benetton has been reviewing wholesale and franchise arrangements while ending partnerships that no longer meet its financial requirements.
The strategy is intended to direct resources toward stores and sales channels that can operate more profitably. However, eliminating locations also reduces opportunities for customers to encounter the brand through traditional shopping.
Manufacturing and Workforce Changes Continue
Benetton's restructuring extends beyond retail stores into manufacturing, logistics and employment. The company has been changing how it produces clothing and moves merchandise through its distribution system.
Production facilities in Osijek, Croatia, and Niš, Serbia, were closed as part of the manufacturing reorganization. These decisions form part of a broader effort to reduce production costs and simplify operations.
The group has also worked to shorten product development cycles so new collections can reach customers more quickly. This approach is designed to help Benetton respond to changes in fashion demand without maintaining excessive inventory.
Workforce reductions and organizational changes have accompanied the restructuring. The company has not publicly provided a complete breakdown of how many workers were affected by the latest Paris and London closures.
In January 2026, Benetton implemented changes to its corporate structure intended to improve efficiency and management oversight. The reorganization also established a more focused approach to its online business.
Digital Sales Become a Bigger Priority
Online shopping has become an important part of Benetton's turnaround strategy. The company is seeking to strengthen digital sales while reducing dependence on expensive physical retail operations.
Benetton created a dedicated e-commerce business structure in January 2026. Its longer-term objective is to generate approximately 20% to 25% of group revenue through digital channels.
The company has also pursued logistics improvements through a partnership with Poste Italiane. The joint venture, called Logistic 360, involves Benetton's distribution facilities in the Treviso region of northern Italy.
The arrangement is intended to improve the use of existing logistics infrastructure and support more efficient distribution. These changes could become increasingly important as the company relies on online orders and a smaller network of retail stores.
Benetton is also attempting to make its clothing collections more competitive. Recent initiatives have included collaborations tied to entertainment properties and efforts to reconnect with younger consumers.
Competition Creates Challenges for Established Fashion Brands
Benetton's difficulties reflect broader pressures facing traditional fashion companies. International retailers with shorter production cycles and extensive online operations can respond quickly to changing trends and consumer preferences.
Competitors such as Zara and other fast-fashion businesses have developed supply chains designed to introduce new styles frequently. That business model has increased pressure on established retailers to control costs and update collections more efficiently.
Benetton also faces the challenge of preserving its distinctive identity. Founded in Italy in 1965, the company became internationally recognized for colorful knitwear and advertising campaigns addressing social and cultural issues.
Those campaigns helped establish the brand's global reputation, but historical recognition alone does not guarantee current sales. The company must attract contemporary shoppers while maintaining the qualities that distinguished it from competitors.
Benetton's financial restructuring has already reduced annual losses and debt. Whether the improvements can produce a lasting recovery will depend on stabilizing sales, improving product demand and managing a smaller retail network.
The company entered 2026 targeting break-even results, making its full-year financial performance an important measure of progress. The closures in Paris and London show that the effort to reduce costs is continuing even as Benetton attempts to rebuild its commercial position.