Benetton has embarked upon a UK-wide review of its retail portfolio which may lead to the closure of some of its megastores on prime pitches.

The review follows the appointment of chief executive officer Silvano Cassano. The company confirmed a series of closures and openings are on the cards as part of the review, which comes on the back of rumours of disappointing trading coupled with high property costs.

The first signs of the review are already appearing, with Benetton poised to dispose of its company owned-store in Corporation Street, in Birmingham, to be replaced by a 20,000 sq ft megastore at Birmingham's Bullring development in September.

Benetton's global strategy is to combine franchised and company-owned stores, although it has wavered between the two in the UK since its entry in the 1980s.