The well-known fashion brand Benetton has definitively closed its store in Ibizalocated on Avenida Ignasi Wallis, as part of an ambitious financial restructuring plan that includes the closure of 500 stores worldwide, including 30 in Spain.
The company, which is going through a significant economic crisis, has decided to dispense with its less profitable outlets and boost its digital marketplace to address its growing losses.
A closing that marks the end of an era in Ibiza
The store window of the Ibiza store is now completely covered with white paper, preventing visibility inside the store. In addition, a sign has been placed on one side of the store informing customers that the store has closed for good and that they can continue shopping through Benetton’s official website.
With this closure, the island of Ibiza bids farewell to the only physical store of the Italian firm, which in recent years had seen its presence in the local market reduced due to competition from online commerce and the rise of other fast fashion brands.
A crisis that is hitting the company at a global level
The closure of the store in Ibiza is part of an international adjustment plan that seeks to reduce the millions of euros in losses that the company has accumulated in recent years. In 2023, Benetton recorded a deficit of 230 million euros, a drastic increase from the 80 million in losses in 2022. In addition, the company accumulated debt in excess of 460 million euros, which has forced it to take drastic decisions for its survival.
As part of this restructuring process, the brand has announced a labor force adjustment plan (ERE) in Spain, which will affect 169 workers out of a total of more than 700 employees in the country. Of these, 156 belong to stores and 13 to offices.
Spain, one of the most affected markets
In Spain, the Italian firm will close stores in several autonomous communities, including Catalonia, the Valencian Community, Andalusia, Madrid, Galicia, Castile and Leon, and the Balearic Islands. Among them, the closure of the Ibiza store, which until now was the only representative of the brand on the island, stands out.
Benetton, which landed in Spain in 1979, has been for decades a reference in the textile sector, with an identity marked by its vibrant colors and transgressive advertising campaigns. However, the decline in sales, the rise of digital commerce and the global economic crisis have forced the company to take drastic measures to try to revive its business.
A future focused on online commerce
Benetton’s strategy now aims to boost its presence in digital commerce, betting on its online store as the main sales channel. However, the closure of physical stores is a blow to the brand’s presence in many cities, leaving Ibiza without its emblematic fashion store.
