These are dark days for the colorful Italian clothing brand Benetton. The fashion giant that surprised with its social and inclusive advertising campaigns will close almost 500 stores worldwide this year due to economic, organizational and strategic problems of the brand.
In Spain, the unions (UGT, CC.OO and Fetico) have been negotiating for weeks the conditions of the Redundancy Program (ERE) that will affect 31 stores and a total of 138 workers. In total, the brand will close 5 stores in the Valencian Community: 2 in Castellón, 2 in Valencia and one in Alicante.
The closure will affect 15% of its store network after several years of economic losses and loss of competitiveness against sector giants such as Inditex, H&M or Fast Retailing (Uniqlo). In the last two years, Benetton has accumulated losses in the millions of euros: 230 million euros in 2023 and around 100 million in 2024.
In June 2024, Claudio Sforza took over as CEO with the aim of leading the restructuring and relaunch of the brand. As a solution to this crisis, the Italians will pivot from a physical store-centric strategy to more online sales channels.
In addition to the change in executive management, Luciano Benetton stepped down as chairman of the family-owned group in May 2024, marking the first time the company operates without direct representation from the founding family.
The 31 stores that will close in Spain, based on the expiration of leases, are as follows:
- Girona.
- Sabadell.
- Sant Cugat.
- Lleida
- Mataró.
- Calpe.
- Barakaldo Outlet.
- Burgos (El Cid)
- Puente Tocinos, Murcia (Atalayas Shopping Center).
- Santander.
- Granada (Recogidas Street).
- Gijón.
- Alfafar.
- Victoria.
- Córdoba (Gran Capitán Avenue).
- Córdoba (La Sierra Shopping Center).
- Logroño (Rioja Shopping Center).
- Vinaroz.
- Gandía.
- Zaragoza (San Ignacio Street).
- Castellón (En Medio Street).
- Santiago de Compostela (AS Cancelas Shopping Center).
- Ibiza.
- Valladolid (Vallsur Shopping Center).
- Teruel.
- Madrid (Plaza Rio Shopping Center).
- Narón, A Coruña (Odeón Shopping Center).
- Alcorcón, Madrid (Tres Aguas Shopping Center).
- Mairena del Aljarafe, Seville (Metromar Shopping Center).
- Badajoz (El Faro Shopping Center).
- Rivas-Vaciamadrid, Madrid (Rivas Futura Shopping Park).