By the end of 2024 the perdita di Benetton Group will be halved compared to 2023, the drop in turnover will be more contained compared to the previous year, the distribution and commercial network will become more and more efficient and the brand will be strengthened through a new integrated marketing strategy. These are some of the predictions that the CEO of the Ponzano Veneto company, Charles Sforza, he is said to have explained to the trade unions during a scheduled meeting.
Benetton, how to cut losses and break even in 2026: the plan
The top manager reportedly highlighted that the company is operating in a very difficult market context, emphasizing the importance of continuing on the path taken and maintaining dialogue with the unions on a collaborative basis, to best manage the balance between production and human resources.
According to what has been learned, the pillars on which the strategy developed by Sforza to deal with the situation is based were reaffirmed at the summit, namely: a Brand Relaunch and a strengthening of digital channels, the recovery of competitiveness through the reduction of the cost of the finished product, with high attention to quality, the rationalization of the distribution and commercial network, the process efficiency and organizational and the cost reduction general.
Benetton: Towards the Closing of 500 Stores
In the details of the numbers and objectives, the loss will drop to 50 million in the 2025, while the 2026 will be the year of reaching break-even. As revealed by Milano Finanza, in 2024 the drop in turnover will be in the order of 20%, that is, going from 1,098 billion euros in 2023 to approximately 900 million. This is due not only to the general market trend (-10%), but also to the sharp reduction in the store network, which according to union sources between direct and indirect (franchising), will be 500 less.
Benetton: Children's line among the hardest hit
From an industrial point of view, Sforza explained that it will bring from 12 to six months the time to create the collections, also through the strong use of commercialization and cutting supplies to Benetton Manufacturing plants in Tunisia, Serbia e Croatia. The production site in Croatia will be closed, while the Tunisian and Serbian sites will have to compensate for the drop in production for the parent company with production for third parties: the cost of the finished product will thus be reduced. As for the relaunch of the brand, it will be simplified the assortment of clothing items (they will be hit the kids line and other products) to focus on a few quality lines that are recognizable to the customer.
Sforza also recalled that the success of the plan "is the last chance" for the safeguard of the group. Plan from which they should still be excluding collective dismissals.
