The Ermenegildo Zegna Group, a Milan-based luxury fashion house founded in 1910, has closed 14 stores in the first half of the fiscal year for 2026. The company, which owns brands including Zegna, Thom Browne and Tom Ford, is taking a more selective approach to its physical store network amid a recent economic downturn.
Selective Approach to Stores
Zegna Group said it will focus its investment strategies on its strongest-performing brands in the best-selling markets. The retailer will also reassess its stores worldwide, with those failing to deliver returns likely to be closed.
According to its latest earnings report, the company now operates 657 stores globally. Most closures occurred in Europe, the Middle East, Africa, and Greater China, while the Americas accounted for the majority of new store openings.
Greater China Focus
Greater China is a particular focus of the shake-up, with Zegna planning to operate fewer but more profitable locations while continuing to invest in stores with greater growth potential.
During the company's latest earnings call, CEO Gianluca Tagliabue confirmed that further closures are expected as the company continues to streamline its retail network. He stressed that the closures are part of a wider strategy to optimise the business rather than simply being linked to storefront leases coming to an end.
Strategic Transition
"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 [ending]," he said.
The chief executive said closing stores would allow the company to redirect investment into its remaining locations and operations. He also highlighted China as an important market for the group, saying the strategy was helping the company gain market share.
Tagliabue added that Zegna's transition phase will happen in several stages, which will take time and, therefore, place some temporary pressure on the company's financial 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," he said.
