Eataly Closes Verona Shop After 4.5 Million Euro Loss

By Real News Hub Staff | May 24, 2025

VERONA, Italy – Italian gourmet food giant Eataly has announced the closure of its Verona location after accumulating approximately €4.5 million in losses, marking another setback for the international food retailer as it restructures its European operations.

The 3,000-square-meter store, which opened in 2019 in Verona’s Gran Guardia shopping district, will cease operations at the end of June, according to company officials. The closure affects approximately 85 employees, though Eataly has pledged to offer relocation opportunities within its remaining Italian locations.

“The decision to close our Verona store was not taken lightly,” said Paolo Baffigi, CEO of Eataly Italy. “Despite our best efforts to make this location profitable, changing consumer patterns and increased operational costs have made it unsustainable to continue operations.”

The Verona closure represents part of Eataly’s broader strategic reorganization following financial difficulties exacerbated by the COVID-19 pandemic and shifting retail landscapes. The company has been working to streamline operations and focus on its most profitable locations worldwide.

Local union representatives expressed disappointment with the closure, citing the impact on employees and the broader retail ecosystem in Verona. “This is a significant loss for our city and for the workers who have dedicated themselves to this project,” said Maria Rossi, regional secretary of the retail workers’ union UILTUCS.

The Verona store specialized in high-quality Italian products, featuring fresh produce, artisanal foods, wines, and an in-store restaurant. Despite initial optimism about the location’s potential, the store struggled to achieve projected sales targets throughout its operation.

Industry analysts point to several factors contributing to the closure, including increased competition from online retailers, changing shopping habits post-pandemic, and the challenge of maintaining Eataly’s premium positioning in a cost-conscious market environment.

“Eataly’s model works well in tourist-heavy locations and major metropolitan areas, but mid-sized cities like Verona present different challenges,” said retail consultant Giuseppe Mariani. “The premium pricing strategy becomes harder to sustain when local purchasing power is limited.”

The closure adds to Eataly’s recent operational challenges in Italy, where the company has faced pressure from both traditional grocery chains and emerging online platforms. Founded by Oscar Farinetti in 2007, Eataly built its reputation on combining retail with dining experiences in large-format stores.

Despite the Verona setback, Eataly maintains operations in other Italian cities including Rome, Milan, Bologna, and Florence, as well as international locations in major cities worldwide. The company recently opened new stores in London and continues expansion in select markets.

Local authorities in Verona are now seeking alternative tenants for the prime retail space, hoping to minimize the economic impact on the surrounding commercial district. The Gran Guardia area has experienced several retail closures in recent years as shopping patterns continue to evolve.

Eataly has committed to honoring all employee contracts through the closure date and providing severance packages in accordance with Italian labor law. The company is also working with local employment agencies to assist affected workers in finding new positions.

The closure timeline allows for a gradual wind-down of operations, with clearance sales expected to begin in early June. Customers with gift cards or loyalty program credits are being advised to use them before the final closure date.

This development reflects broader challenges facing specialty retail chains across Europe as they adapt to post-pandemic consumer behavior and economic pressures affecting discretionary spending on premium food products.

Eataly’s management indicated that lessons learned from the Verona closure will inform future location selection and operational strategies as the company continues its global expansion efforts while maintaining financial stability.