A major luxury retailer has closed more than a dozen stores this year and warns that additional closures could follow as it reshapes its global retail network.
The company is taking a more selective approach to its physical footprint, focusing investment on its strongest-performing brands and markets while reassessing locations that are not delivering the same returns.
Founded in 1910 in Italy, the Ermenegildo Zegna Group is a global luxury fashion company whose portfolio includes Zegna, Thom Browne, and Tom Ford.
Zegna Group closes 14 stores worldwide
Zegna Group closed 14 stores during the first half of fiscal 2026, bringing its global store count to 657, according to the company’s earnings report.
Most of the closures occurred in EMEA and Greater China, while the Americas accounted for the majority of new store openings.
The company is reassessing its Greater China retail presence in particular, where it plans to operate fewer, more profitable locations while continuing to invest in stores that it believes have stronger growth potential.
During the company’s latest earnings call, Zegna Group CEO Gianluca Tagliabue said the company expects to close additional locations as it continues to optimize its network.
Tagliabue indicated that the closures are part of a broader optimization effort rather than simply a response to expiring leases.
“We are going to close, and that’s not only this year, but we will take more because we are not closing just for the anticipating the closure by the lease,” said Tagliabue.
He said these shutdowns will allow the company to redirect investment toward its remaining stores and operations, and pointed to China as an important market for the group, noting that the company believes its strategy is helping it gain market share.
Why Zegna is closing stores
The store closures are part of a broader effort to reshape Zegna Group’s retail and wholesale networks globally.
The company is reducing select wholesale locations while increasing its focus on directly operated stores. The strategy gives the group greater control over how its brands are presented and can help protect pricing and brand positioning.
Thom Browne, in particular, is moving away from a wholesale-driven model toward a more retail-oriented approach.
Tagliabue said the transition is taking place in several phases and will require time, creating some temporary pressure on the company’s results.
“We are completing the reduction and upgrading of the wholesale network, and to be honest, the process has been taking longer than initially anticipated, partially due to a challenging macroeconomic environment,” said Tagliabue.
At the same time, Zegna Group continues to invest in physical retail, with plans to open flagship stores in key markets for the remainder of the year.
That approach underscores that the company is not abandoning brick-and-mortar retail. Instead, it is concentrating its investment on locations and markets that it considers strategically important.
Zegna Group’s fiscal 2026 results
During the first half of fiscal 2026, Zegna reported:
- Revenue: Increased 6.4% year over year
- Direct-to-Consumer revenue: Climbed 12.1%
- Wholesale revenue: Declined 14.6%
The Americas and Greater China delivered the strongest regional growth. Revenue in the Americas increased 15.1%, while revenue in Greater China rose 5.8%.
By brand, revenue for Zegna climbed 11.9%, while Tom Ford was up 6.4%. Thom Browne revenue declined 0.3%.
Fashion rivals close stores
Zegna Group is not alone in reassessing its physical retail footprint. Several major fashion and luxury companies have closed stores or announced additional shutdowns as they adjust their businesses to changing consumer demand and shifting market conditions.
For many of these companies, the strategy is not simply about reducing store counts but reallocating investment toward stronger brands, markets, and locations.
Here’s some of my previous coverage of recent store closures:
- Capri Holdings: Closed 41 locations across its brands in the year ending June 27, 2026.
- Prada Group: Closed 10 Versace stores since the end of 2025 and plans to shutter more locations while relocating select boutiques to stronger markets in 2026 and 2027.
- Kering: Closed 133 locations across its brands in 2025, with an additional 100 store shutdowns scheduled worldwide in 2026.
- Ferragamo: Closing roughly 70 stores between 2025 and 2026.
- Burberry: Closed 21 locations during fiscal 2026.
- Tapestry: Closed 64 directly operated stores during fiscal 2026.
The trend does not necessarily signal that retailers are abandoning physical stores altogether. Instead, companies are becoming more selective about where they operate and how they allocate capital.
Stronger-performing brands and markets can continue to receive investment, while underperforming locations may be closed, relocated, or replaced.
Related: Nearly 200-year-old retailer exits an entire market
