United Colors of Benetton has reportedly closed its flagship store at 89 Oxford Street, near Tottenham Court Road. The shop opened in March 2018 and covers 16,000 sq ft over three floors. It ended with a closing-down sale, with discounts of up to 70%.
A showcase store
When it opened, the store was meant to show off Benetton’s newest ideas for shops. It had a dedicated knitwear area, interactive touchscreen tables and a 12-metre-high entrance with LED displays. At the time, Benetton said the store would support its growth in Britain, where it then had 55 points of sale, including concessions.
Behind the closure
Benetton has not said publicly why the store is closing or how many staff are affected. The closure does fit a wider restructuring. The company, owned by the Benetton family’s holding company Edizione, has been losing money for several years. Its net loss for 2025 was £29 million, down from £87 million in 2024 and £204 million in 2023. Revenue fell 13% to £689 million.
Under chief executive Claudio Sforza, who joined in June 2024, the group is cutting its store network, ending ties with wholesale and franchise partners that are not performing, and simplifying the business. It is aiming to break even in 2026.
A changing Oxford Street
Benetton is not the only big name rethinking its place on Oxford Street. HMV has said it will leave its flagship there in March 2027, after its landlord proposed doubling the rent. HMV is now looking for another site in the West End.
The tailoring view
Benetton made its name on colourful knitwear, and its Oxford Street shop was built to impress. But huge flagships cost a great deal to run, and many brands are now asking whether they are worth it. Clothes still need to be seen, touched and tried on, though. That is why a fitting with a tailor is still done in person, one customer at a time.
Sources: Retail Gazette, FashionUnited.
Photo: Andrew Abbott, licensed under CC BY-SA 2.0.
