United Colors of Benetton Closes Oxford Street Store

Introduction

United Colors of Benetton has reported the closure of its Oxford Street Flagship in London. The last trading day was 18 October 2026. The 16,000-square-foot store is the brand’s UK retail presence. This closure of the Benetton store is to restructure the business, resulting in decreased costs & improve profitability. 

What Happened?

United Colors of Benetton closes its three-storey flagship. The store opened on 15 March 2018, and it was one of the major investments in the brand’s UK retail expansion. According to Industry Fashion, it was the last UK store. However, the closure does not signify United Colors of Benetton completely withdrawing itself from the British market. 

The flagship was designed in a way to provide a highly interactive shopping experience. The store has a dedicated knitwear section, 12-metre-high entrance arches fitted with LED displays, and touchscreen tables for browsing products. 

Before closing, there was a store offering discounts of up to 70%. However, there are not any confirmation why store got closed or how many employees got affected. The store closing is part of a restructuring plan by Benetton’s CEO Claudio Sforza. The company is focusing on decreasing costs, ending partnerships, and reviewing costs with underperforming franchise operators and wholesalers to improve Benetton’s financial position. 

Moreover, in 2025, Benetton’s revenue was € 792 million, less from € 917 million in 2024. However, its net loss fell from € 100 million to € 33 million.  This clearly reflects company decreased its losses but still continued to face declining revenue as per resources. 

Key Highlights

• Brand: United Colors of Benetton
• Development: Reported closure of its Oxford Street flagship
• Location: 89 Oxford Street, London, United Kingdom
• Last trading day: 18 October 2026
• Store size: Approximately 16,000 square feet
• Opening date: March 2018
• Retail format: Three-storey flagship with interactive digital features
• Restructuring focus: Store network optimisation, cost reduction and improved profitability
• 2025 financial performance: €792 million in revenue and a €33 million net loss

Benetton’s Retail Strategy: Key Lessons for Fashion D2C brands

Physical Stores Demand Strategic Financial Planning

Benetton’s reported closure reflects why brands should have a check on store profitability before investing in large spaces. Fashion D2C brands must take into consideration staff, inventory, rent, and maintenance costs before opening a physical store. If sustainable sales are being generated than only its valuable to open a flagship store. 

Omnichannel Investments Should Deliver Results 

Benetton’s Oxford Street store is a combination of physical shopping with digital features. However, a store built with modern technology doesn’t ensure sales. Fashion D2C brands use offline and online customer data to understand customer shopping patterns. 

Flexible Retail Models Can Decrease Costs

Benetton’s restructuring strategy showcases a requirement to adjust store networks on the basis of business performance. Fashion D2C brands should test demand via temporary spaces, pop-up stores, and shop-in-shop formats before any long-term leases. 

Brand Visibility Should Lead to Sales

A famous retail location can surely get customers, but visibility should convert into customer loyalty and sales. Other fashion D2C brands must focus on similar products, competitive pricing, and an amazing shopping experience. 

About United Colors of Benetton

United Colors of Benetton, an Italian fashion brand, is well-known for casual clothing, colourful knitwear and collections for men, women and children. UCB’s Oxford Street Flagship opened in March 2018, displaying its great retail concept and ambitions in the UK. Explore United Colors of Benetton fashionable outfits on NineE.

What Happens Next?

Benetton’s wider restructuring programme focuses on restoring profitability, with the group targeting break-even in 2026. There are no replacement plans announced for the Oxford Street location or any other store opening to expand UK retail developments.   

Sources:

1. TheIndustry.fashion — Benetton closes last UK store as it continues restructuring — 19 October 2026.
2. Retail Gazette — Benetton closes Oxford Street flagship after eight years amid restructuring — 19 October 2026.
3. Benetton Group — Official announcement on its new Oxford Street flagship — March 2018
4. ANSA — Benetton reduces losses in 2025 and targets break-even — 23 May 2026