United Colors of Benetton has reportedly closed its flagship Oxford Street store after eight years.
Its 16,000 sq ft London store, which opened in March 2018, was expected to shut its doors on Sunday with a closing-down sale offering discounts of up to 70 per cent.
The three-storey shop at 89 Oxford Street was launched as a major investment in Benetton’s UK business, with the brand positioning the site as a showcase for its latest retail concept.
Located near Tottenham Court Road, it featured a dedicated knitwear area, interactive touchscreen tables and a 12-metre-high entrance with LED displays.
At the time, Benetton said the flagship would support its ambitions to grow in Britain, where it operated 55 points of sale, including concessions.
The closure forms part of a wider restructuring programme aimed at restoring profitability after several years of mounting losses.
Benetton, which is owned by the family’s investment holding company Edizione, reported a £29 million net loss in 2025, down from £87 million the previous year and £204 million in 2023.
However, the improvement came alongside a substantial contraction in the business, with annual revenues falling 13 per cent to £689 million, compared with £798 million in 2024.
The group has been reducing its store network and cutting ties with underperforming wholesale and franchise partners as part of a turnaround led by chief executive Claudio Sforza, who was appointed in June 2024.
The restructuring has also involved reducing operating costs and simplifying the business, with Benetton targeting a return to break-even in 2026.
Its net debt, including lease liabilities, fell from £357 million to £272 million during 2025.
The Oxford Street closure follows news that HMV will also leave its flagship on the London shopping street in March 2027, after its landlord proposed doubling the rent and required substantial investment in the property.
HMV said the increases had made the store commercially unviable despite strong sales growth, and is searching for a replacement site in London’s West End.
Benetton has not publicly confirmed the reason for its Oxford Street closure or how many employees will be affected.
Click here to sign up to Retail Gazette‘s free daily email newsletter
