Benetton To Close More Stores

Benetton will close at least three major London stores as part of its ongoing property review that may lead to a shake-up of its portfolio in the South-East. Speaking at a strategy presentation in London, Benetton chief executive Silvano Cassano admitted it had been a tough 18 months in the UK. He said stores in Oxford Street, at Brent Cross, and one of the Sisley or Benetton stores in Kensington would close.

The company's Bluewater store is also believed to be a possible closure. Benetton opened a 20,000sq ft store at Birmingham's Bullring in September but is believed to have tried to offload the store prior to the opening. Cassano further stated the Oxford Circus flagship was not under threat: "I cannot fail at Oxford Circus. The store is better than any advertising."

Benetton is trying to drive sales by boosting average selling price, with menswear, which is more expensive than womenswear, growing in size by a third. It is also trying to make higher-priced hanging garments account for 15 per cent to 20 per cent of sales against the current 9 per cent.