Benetton exited Japan after 40 years

Benetton, the Italian fashion brand known for its colourful knitwear and controversial ad campaigns, withdrew from Japan on October 25, 2024, closing all physical stores and its official online shop. The brand had operated in Japan for approximately 40 years through a franchise model.

The exit followed years of declining relevance for Benetton in Japan. The brand had once been a symbol of European cool — its vivid sweaters and United Colors of Benetton campaigns defined 1980s and 1990s fashion — but by the 2010s, its appeal had faded. Japanese consumers shifted toward either fast-fashion basics (Uniqlo, GU) or luxury European labels, leaving Benetton's mid-tier pricing without a clear position.

Benetton Japan operated through a franchise model, which meant the parent company bore limited direct financial risk from the closure. However, the exit represented the complete loss of a market where the brand had a decades-long presence. Franchisees had struggled to maintain profitability as sales declined and foot traffic fell in regional shopping centres.

The Japan exit was part of Benetton Group's broader global restructuring under new leadership. The company had already closed stores across Europe and the US, and the Japan withdrawal was one of the final steps in shrinking the brand's international retail footprint to focus on core European markets.