Benetton restructures business to focus on brands

Benetton has revealed an overhaul of its business model to refocus the company around its United Colors of Benetton and Sisley brands.

Alessandro Benetton: chairman of Benetton Group
Alessandro Benetton: chairman of Benetton Group

As part of the restructure, the company's board of directors has approved a three-year programme featuring the creation of three divisions that will focus on brands, manufacturing and real estate management.

Benetton intents to create a clearer divide in the operations for both Sisley and United Colors of Benetton, in order to increase their competitiveness in the market, while focusing investment on flagship stores, develop new retail concepts and focus on potential accessory and fragrances partnerships.

The Italian business de-listed from the Milan stock exchange last year. The three-year programme is intended to keep the company's turnover stable, stating its aim is to "maintain turnover substantially unchanged by the end of its third year".

Alessandro Benetton, chairman of Benetton Group, said: "From the outset, we laid out a strategy for rethinking our business based on discontinuity and renewal, of course without forgetting our rich history.

"Today we see certain early signs that the strategy is starting to pay off, even if we are still only at the beginning of the journey and the market environment remains uncertain.

"Our efforts are focused on recovering profitability by simplifying the business model and focusing on our brands."