The Italian fashion retailer has closed its final UK physical store, ending its standalone high-street presence as it prioritises financial recovery and restructures its global retail and franchise network.
United Colors of Benetton has shut its flagship store at 89 Oxford Street in London after eight years of operation, marking the end of the Italian fashion retailer’s remaining standalone physical retail presence in the UK.
The three-storey, 16,000-square-foot flagship ceased trading on October 18, 2026, following a closing-down sale offering discounts of up to 70%. The closure brings an end to a significant chapter for Benetton, which operated nearly 60 UK stores a decade ago. The company has not announced a complete withdrawal from the British market, with its online business remaining a separate sales channel.
Opened in March 2018, the Oxford Street flagship was originally positioned as a major investment in Benetton’s UK expansion strategy. The store featured dedicated knitwear areas, interactive touchscreen tables and 12-metre-high LED installations. At the time, Benetton operated 55 points of sale across the UK, including concessions, and intended to expand its presence.
In its original announcement about the London flagship, the company described the location as an important part of its British expansion plans, stating that it was entering a market “where it plans to expand further its activity.”
The latest closure comes as Benetton Group undergoes a restructuring programme under Chief Executive Officer Claudio Sforza, who took over in June 2024. The turnaround strategy includes shutting loss-making stores, reducing operating expenses, reviewing production and sourcing operations, and ending relationships with underperforming wholesale and franchise partners.
The restructuring represents a significant shift for Benetton, which has historically relied on a combination of directly operated stores, franchised outlets and wholesale distribution to establish its international retail presence.
As part of the recovery programme, the group has been reviewing its retail partnerships and reducing exposure to locations and franchise arrangements that do not meet its financial performance expectations. The strategy is intended to streamline operations and support its target of returning to break-even in 2026.
Benetton’s financial performance reflects the scale of the restructuring. The group reported a net loss of approximately €33 million in 2025, significantly lower than the €100 million loss recorded in 2024. However, revenue declined 13.6% to €792 million, compared with €917 million the previous year.
In the UK, Benetton’s business generated approximately €3.8 million (£3.3 million) in revenue during 2025, down around 22% from €4.9 million (£4.2 million) in 2024. The declining sales highlight the challenges facing the brand in a market where its physical retail footprint has steadily contracted.
Founded in 1965 in Ponzano Veneto, Italy, Benetton grew into an internationally recognised fashion business known for its colourful knitwear, casual clothing and distinctive advertising campaigns. The group operates the United Colors of Benetton and Sisley brands and is controlled by the Benetton family’s investment holding company, Edizione.
Franchising has played an important role in the company’s international development, allowing it to expand into overseas markets through local retail partners alongside company-operated stores. Its global distribution network has historically included franchised stores, wholesale accounts and other retail formats.
Alongside store rationalisation, Benetton has been strengthening its digital operations. In June 2026, the group announced a digital transformation initiative involving the migration of its Benetton and Sisley websites to Shopify, reflecting its efforts to develop online sales channels as its traditional retail network contracts.
Benetton has not issued a public statement explaining the specific reasons for closing the Oxford Street location, disclosed how many employees are affected, or announced plans to reopen physical stores in the UK. No new UK franchise development agreement has been announced in connection with the closure.
