El corte ingles crisis

El corte ingles crisis

results el corte inglés

See listEl Corte Inglés (department stores) Hipercor (hypermarket) Supercor (supermarket) Opencor (24 hours) Sfera (fashion chain) Bricor (DIY) Viajes El Corte Inglés (travel) Seguros El Corte Inglés (insurance) IECISA (IT consultancy) Telecor (telephony)
When the war ended in 1939, and in view of the need of Sederías Carretas for the site where the first building of Galerías Preciados would later be located, El Corte Inglés was moved in June 1940 to 3 Preciados Street, on the corner of Tetuán Street, where Almacenes El Águila was located. It was then constituted as a Limited Company, with a capital of one million pesetas subscribed in equal parts by César Rodríguez, who became the first president of El Corte Inglés S.L., and Ramón Areces, the latter contributing his share of the capital by means of a loan provided by the former. Subsequently, in successive capital increases, it was César who took the majority of the shares, even though Ramón was in charge of the commercial strategy and the day-to-day running of the business.

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At the same time, El Corte Inglés (ECI) aims to reduce its debt, of 3,800 million euros by the end of 2020, by 60% and to increase online sales to over 30% of its total turnover, which in 2020 – in the midst of the crisis – reached 10,432 million euros.
Especially in the food area, which grew exponentially during the crisis, and which has been strengthened in the premium sector of the high range of products with the purchase by ECI of the supermarket chain ‘Sánchez Romero’.
All of which maintains the face-to-face sales and retail business in stores and department stores as irreplaceable, profitable and essential in this ‘great comeback’ of ECI in the face of the pandemic crisis and in its plans for the modernization and diversification of its line of business.
As is the case with ECI’s new ‘universal’ cards with Master Card, the merger of ECI’s travel division with Logitravel, with 500 points of sale worldwide, and other initiatives such as Sweno, as a mobile operator and energy retailer, or Sicor for security services.

el corte inglés logistics

With all this, El Corte Inglés went from having incredible advantages for the consumer (having everything and being very flexible with returns) to offering something that everyone else offers, both online and physical. Transformation was inevitable.
However, instead of transforming itself, it attacked saturated segments (Bricor for DIY, Supercor and Opencor for supermarkets) with disastrous results. And to top it off, it arrived late and badly in the online world, unable to compete with Amazon and the like.
The main problem is that El Corte Inglés arrived at the crisis heavily indebted due to a very disorderly opening plan and in cities that could not be profitable even if they had been a success.
Family management of a large company and not taking it public does not have to be bad (just look at Germany) but there has to be a good alignment and it is true that in crises discrepancies tend to multiply.
With an exhausted model I can only think of one way out: fewer centers (they have already started but it will continue), more elitist, trying to attract a premium consumer who will pay for large spaces (they have also started, there are centers very specialized in tourists with high purchasing power), fewer employees and less relevant.

el corte ingles social capital

“Based on this reality, we approach our future with enthusiasm and new business prospects because we have a realistic, modern and ambitious strategic plan; with a board of directors that supports this path of transformation and growth that we have already embarked on; and with a management team headed by our CEO, Víctor del Pozo, full of innovative ideas, with extensive experience in the business and with great management skills,” he highlights in the group’s 2020-2021 annual report.
“We are working on numerous projects such as the launch of a new mobile and fiber operator that will combine the offer of technology with telecommunications services in the smart home environment; or the commercialization of energy, a project that will be launched in fiscal year 2021; or the development of integral services among which are security, cleaning, or home alarms, or the creation of a new logistics company that will provide service to third parties,” explains Álvarez.

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