Since taking over the Venetian company this summer, Claudio Sforza, CEO of Benetton Group, has been working on the company’s reform plan, which he is now finishing. Within a year, the plan should cut losses from US $ 243.32 million to US $ 116.37 million. In 2026, the break-even point is anticipated. According to several Italian media outlets, 500 stores will be closed in order to meet this target.
Sforza met with the textile unions at Benetton’s headquarters to go over the reorganisation plan. According to projections, the market’s shrinking (minus 10 per cent) and the substantial drop in the retail network will both contribute to a 20 per cent decline in turnover in 2024, from US $ 1.15 billion in 2023 to about US $ 952.13 million.
The CEO will also cut the delivery timeframes for collections from 12 to 6 months as part of his other debt reduction initiatives. Following Andrea Incontri’s departure as creative director in August, it was stated that the internal team will assume creative leadership. The Croatian facility is also scheduled to close on the production side. Production for third parties will be used to compensate those in Tunisia and Serbia. Additionally, there will be fewer clothing lines and more money spent on “recognisable and competitive garments.”
