Benetton set to close 500 stores: Benetton, the Italian brand once a leader in the fashion world, is set to close 500 stores around the world. In which 202 of its stores located in Italy have been locked. The company has said that it has taken this decision under business restructuring. It is noteworthy that the company has been facing continuous losses for the last two decades.
group loss reduction plan
Clothing brand Bennett, which has been struggling financially for the last several years, has made a plan to reduce its losses and debt. The company aims to reduce its net loss to 50 million euros in 2025 compared to 110 million euros in 2024 last year. Company CEO Claudio Sforza said that under this, about 500 stores around the world are going to be closed. Even in 2023, the company suffered a loss of Rs 23 crore. Sforza has been restructuring the business since taking over as CEO in July 2024. The exercise included changes in the brand’s strategy in addition to a focus on closing owned stores as part of cost cutting.
Benetton brand started in 1965
Italian clothing brand Benetton entered the world of fashion in 1965. Which became popular due to its quality, durability and integration criteria. Their slogan ‘All the colors of the world’ was not only a wide range of colors available in their collections but also a commitment to social issues like war, caste discrimination, AIDS.
Failing to keep up with changing customer behavior
Since the year 2000, Benetton has been continuously losing its reputation and popularity. It was losing market share as it failed to keep pace with the changing habits and behavior of consumers. In that too, due to the failure of the franchise model, the company’s losses increased. In which their loss increased by 3 crore euros. Loss of more than 100 million euros due to poor management. To reduce this loss, 200 stores were closed last year. And will close 300 more stores by the end of this year.
More than 900 employees were laid off
In July last year, the company had decided to fire 908 of its employees. He was dismissed with voluntary benefits of six months. He was also given a compensation of 50 thousand euros. Along with this, Bennett guaranteed that he would not make any layoffs for the next three years.
