El Corte Inglés is a leading company in the sale and distribution of fashion, accessories, home decor, technology and other sectors. In addition, it offers services such as travel agency (Viajes El Corte Inglés) and supermarkets (Supercor), the latter being an important pillar in its business identity. But, what is the reason for the closure and mass sale of their supermarkets.
El Corte Inglés is selling its stores, including those of its Supercor chain, as part of a business reorganization process. This strategy seeks to consolidate its leadership in the most profitable business segments, such as fashion and technology, while reducing its presence in other sectors, such as food. This is reflected in a report by the Organization of Consumers and Users (OCU).
The decision to start closing its large stores began last year and included the sale of 47 supermarkets to Carrefour, representing 25% of its total network, with the approval of the CNMC and a value of 60 million euros, as reported from El Cronista.
What is the strategy that El Corte Inglés is following
El Corte Inglés is adjusting its strategy to reduce its presence in physical stores, especially in those that are rented, do not offer all services and have a low economic performance.
To compensate for this reduction, the company is betting more on e-commerce in order to stabilize its financial situation (Amazon type).
This change includes the closure of establishments as part of a plan initiated two years ago to optimize its distribution network and balance its accounts, especially affected in 2020 by the coronavirus pandemic, which generated record losses of 2945 million euros and a drop in revenues of 30%, reaching 10,432 million euros.