Iconic Italian clothing brand founded in 1965, Benetton has announced plans to close 420 stores by 2025-end. By 2024, the brand closed 180 stores, marking a significant reduction in its physical presence and reflecting the challenges faced by the brand Benetton in adapting to new consumer habits.
The brand’s difficulties began in the early 2000s as it struggled to keep up with the fast fashion industry’s rise, which changed how people shop. Despite attempts to reinvent, Benetton’s efforts have not been successful, and its market position has weakened over time.
One of the key factors contributing to the crisis is the brand’s franchise model. While this model helped Benetton expand globally, it eventually became a burden. The company faced significant debt, including a reported €30 million in southern Italy. This has highlighted deeper issues with the company’s management and strategy.
The situation worsened with a public dispute between Luciano Benetton, Co-founder and Massimo Rendon, CEO The conflict focused on the company’s financial mismanagement, with a reported deficit of €100 million. This leadership turmoil has added to the company’s difficulties in navigating the crisis.
In an attempt to address these challenges, Benetton has launched a restructuring plan. The plan is aimed at saving the brand, but its success depends on the company’s ability to adapt to the rapidly changing fashion market.
Founded in 1965 and based in Ponzano Veneto, Italy, Benetton Group Srl. operates a network of about 5,000 stores worldwide. It is a wholly owned subsidiary of the Benetton family’s holding company Edizione. The company’s future will depend on how well it can address its internal issues and adapt to the evolving market.
