The business group is divided into the following areas of activity, which are usually commercially configured as companies whose shareholding belongs in its entirety or overwhelmingly majority to El Corte Inglés S.A.:
El Corte Inglés S.A. The parent company, dedicated to distribution through department stores. This was the main activity of the company since its inception. In 2010 it still accounted for 59% of total revenues and about 63.7% of net profit. As of 28 February 2013, El Corte Inglés has 86 centres, 84 in Spain and 2 in Portugal.
Hipercor. Chain of hypermarkets dedicated to the distribution of food and household appliances. Hipercor was a response to the entry of French capital into the Spanish market in the 1980s, including Alcampo, Pryca and Continente, with the latter two merging and now operating under the Carrefour brand. As of 28 February 2013, Hipercor has 42 centres in Spain.
Bricor. Home improvement and home decor retailer. Bricor was a response to the consolidation of the sector by the Adeo group, which was formed from the Auchan group, which owned Alcampo, among other interests. The Auchan group also owns the Leroy Merlin, Aki and Bricomart brands in Spain. As of 28 February 2013, Bricor had 16 stores: 14 in Spain and 2 in Portugal.
Read the full text
Supercor / Supercor Exprés. Supermarket and convenience store chain. Supercor emerged to compete with mid-sized local grocery stores at the end of the 1990s, such as Caprabo, Eroski, and Mercadona. Supercor Express is a smaller sized convenience store format which was adopted by the company in 2011. The sum total of convenience stores, including Supercor, Supercor Express, and Opencor was 238 as of 28 February 2013.
Sfera. Fashion retailer stores group. over as of the end of 2022, 490 points of sale - mostly freestanding stores - owned and franchised, including 75 stores-in-store within El Corte Inglés department stores in Spain and Portugal. Sales in fiscal 2020 were 461 million euro. There are stores (as of December 2022) in: It was conceived as a response to chains like H&M, and the Spanish brands Mango, Zara, and Springfield, the latter two of which belong to Inditex and Cortefiel respectively.
IT and communications
In the IT and communications fields, El Corte Inglés has three subsidiaries, which are listed in order of establishment:
Informática El Corte Inglés (IECISA). Dedicated to IT consulting, software development and computing services.
Investrónica. Consumer computing and telephony wholesaler, and former computer manufacturer under the Inves brand. Integrated in IECISA from 2015.
Telecor. Telecommunications services for consumers and businesses.
Service sector
In the service sector, the El Corte Inglés group owns:
Viajes El Corte Inglés. Travel agency group from a wholesale and retail point of view. As travel agency it has 599 branches worldwide, 506 of which are in Spain and 93 abroad.
Seguros El Corte Inglés (CESS). Insurance company dedicated to insurance brokerage and financial and real estate mediation. It has 105 branches, most of which are located in the El Corte Inglés department stores, although some are dedicated Seguros El Corte Inglés storefronts.
Financiera El Corte Inglés. A consumer credit company that finances purchases for customers and distributes the El Corte Inglés shopping card. Present in Spain and Portugal. 51% of the capital of Financiera El Corte Inglés belongs to Banco Santander as of 2014.
MEGA 2. A security and terciary service company present in Spain and Portugal.
Grupo Sicor. Provision of services related to physical and digital security, integral services, cleaning and maintenance, logistics, and employment.
Sweno. A telecomm company.
Sweno Energia. A residential and commercial electrical utility.
Bitcor. A cryptocurrency company.
Auxiliary businesses
El Corte Inglés owns 100% of a number of businesses auxiliary to their main business functions, unless otherwise noted.
Industrias y Confecciones S.A. (INDUYCO). Integrated into the group in 2010.
Ason Inmobiliaria de Arriendos S.L. A real estate and rental management company.
Construcciones, Promociones e Instalaciones S.A. A construction and renovation company.
Editorial Universitaria Ramón Areces S.A. A publisher of text books for Spanish universities.
Tourmodial Operadores S.A. A travel services company.
Parinver S.A. (75.83%). A holding company which owns some hotel groups and other businesses.
The company has partial ownership in other businesses:
50% of Gestion de Puntos de Venta S.A. (GESPEVESA) which manages Opencor stores at Repsol fuel stations.
50% of Sephora Cosmeticos España S. L.
6.15% of Euroforum Escorial S.A., a training and corporate events company.
4,36 % of Parque Temático de Madrid S.A. which operates Parque Warner Madrid.
1.7% of IAG.
E-commerce
El Corte Inglés' website was the largest in terms of the number of its customers in Spain, with 3.7 million customers in 2011. In 2013, 3.5 million customers and 137 million visits were registered. In December 2016 they reached their monthly peak, with more than 14 million unique users and more than 30 million visits to www.elcorteingles.es, increasing to 32 million in January 2017, becoming the most visited Spanish commercial website in Spain. It was the second most visited ecommerce website in Spain in 2017, behind Amazon.com.
Since 1999 its General Director of Electronic Commerce and Distance Sales Division is Ricardo Goizueta Sagues and the Digital Director or Chief Digital Officer (CDO) is, since 2012, José María Fernández Ortega.
Business model
Like Galerias Preciados in its time, El Corte Inglés' business model was based on introducing American style department stores to Spain during a period where Spain was emerging from economic isolation and autarky. As such, its business model revolved around the idea of a store where customer could buy everything, hence its slogan "The store for all your shopping" (La tienda de todas tus compras). Stores aimed not only to offer a wide variety of articles, but also goods of different levels of quality, with goods divided into departments with additional services such as home deliveries, wedding lists, repairs included in sale price, etc., as well as satisfaction and quality assurances through money-back guarantees.
This model depends on the performance of the following actors:
Customers
The company's main business model has remained constant until the present. Its social and corporate responsibility documents emphasize five pillars of commitment to the customers: quality, service, assortment, specialization, and guarantees. This approach has been used to build customer loyalty.
In the food department, the company has launched a generic brand called Aliada. The El Corte Inglés shopping card is a credit card which was introduced in 1968, and is one of the most popular in Spain, with 11.58 million active cards in Spain in 2017. Card holders have a one-month grace period to pay off the balance of their card, with an option to defer payment for up to three months without interest, although administrative fees apply. Payment can also be deferred with low interest payments for up to 36 months. The card also grants holders the right to at least 2 hours free parking in store parking garages, and allows the purchase of any product sold in El Corte Inglés centers. Since 2006, the card can also be used to pay for fuel at Repsol fuel stations.
Human resources
In 2011, the company's workforce was made up of 99,323 employees, down from 102,699 the previous year. 93% of those had long-term contracts, and 71% were full-time. The median age of employees was 39 years, with 13 years of experience. 37% of total employees were male compared to 63% female, although in management males outnumbered females.
Annual reports indicated that in 2012, the total number of employees further declined to 96,678, 94% of whom were full time, and 64% of whom were female. The relationship between El Corte Inglés and its employees has traditionally been formal, familiar, and paternalistic, with the company trying to establish feedback between the company and its employees. The company provides training and educational assistance, financial services, and discounts or financing for purchasing goods and services.
The company has received criticism for discriminating against women, harassment of labor unions, is directly implicated in exploitative labor practices. In the majority of the company's locations, union elections are won by Fetico or FASGA, a national retail union accused of being a yellow union by the UGT and CCOO. Some companies in the El Corte Inglés group, such as Induyco, have been criticized by groups like Oxfam for issues of precarious work and exploitation of textile workers in third world countries.
Suppliers
The company has pursued vertical integration since early on, especially with textiles, when Ramon Areces and other shareholders founded Induyco in 1949, and which became a sociedad anonimo in 1955. Induyco, in spite of having a non-proprietary relationship with El Corte Inglés, initially had El Corte Inglés as its exclusive wholesale client, and its employees were offered benefits as if they belonged to the same group. Later, Induyco still had El Corte Inglés as its majority client, although the relationship was no longer exclusive, though its share structure remained the same, and Isidoro Alvarez was the president. In 2010 El Corte Inglés integrated Induyco into its corporate structure, and in 2012 it ceased activities.
In the field of texties, in addition to Induyco, the company created Confecciones Teruel in 1975 and Industrias del Vestido in 1976. Both companies got the majority of their capital from the Induyco group which itself was part of Investronica and Invesgen. Its creation was motivated by labor conflicts which occurred at Induyco during those years. In the field of supplying special materials for sale, the company created Mostoles Industrial in the same way as Induyco. Mostoles Industrial, unlike Induyco, retained El Corte Inglés as its exclusive customer while having a non-proprietary relationship with it. Mostoles is most well known for its production of kitchen furniture for the "Forlady" brand.
On the side of real estate development, the company created Construcción, Promociones e Instalaciones S.A. in 1976, whose capital is derived in its entirety from the El Corte Inglés group, and which is responsible for the construction of new stores and renovation of existing ones.
Publicity and advertising
El Corte Inglés has one of the biggest advertising budgets in Spain. In 2011, the group was the biggest advertiser in Spain, with an investment of 171.3 million euros, and as an individual El Corte Inglés itself was the third biggest, with a budget of 99.8 million euros. The company periodically conducts large publicity campaigns like Semana Fanstisca (Fantasic Week) and the Ocho Dias de Oro (the Eight Golden Days) by announcing discounts on its products. On the Christmas holiday, it organizes an animation spectacle called "Cortylandia" in its main stores.
Furthermore, part of El Corte Inglés' company culture includes sponsoring a number of activities that also serve as a form of advertising. For example, the El Corte Inglés Rally is a rally race that ran on the Canary Islands from 1977 to 2001.
Flagship stores
Madrid-Castellana flagship
The chain's Spanish: buque insignia (flagship) department store is El Corte Inglés Castellana in Madrid's Tetuán district, in the Cuatro Caminos neighbourhood, just west of Paseo de la Castellana boulevard and Nuevos Ministerios station. It opened in 1969 and its biggest extension opened on 7 October 2011 on the site of the Windsor Building which caught fire in 2005 and was demolished. In its place, the Torre Titania tower, which connects to the original store, was built. It was designed by architects Pablo Muñoz López and Pedro Vilata Capón/Capont.
The complex encompasses several buildings. The largest has 27 floors, including five below ground dedicated providing parking for 1,600 cars. There are two block of two technical floors each which house engine rooms, air treatment units, elevator machinery, etc. There is a total floor area of 170,000 m2 (1,800,000 sq ft) of which 70,000 m2 (750,000 sq ft) is dedicated to retail sales, thus ranking among the 20 largest department store locations currently in operation worldwide. The company spent around 300 million euro from 2008 through 2011 with the construction of a new building at Castellana 85, dedicated to decoration, that was then integrated with the existing one. After the remodeling and reorganization, merchandise was presented in a differentiated and themed way, in addition to new brands, services, and spaces, such as the Gourmet Experience a food hall with sales of gourmet products, and dining options such as seafood, Asian, Italian, Iberian specialties, hamburgers, grilled meats and fish, cheeses, skewers, fresh pastries, and fresh juices.
The Castellana flagship location carries the most comprehensive collection of designers of any large store in Spain. Designer boutiques in the store include Hermès, Louis Vuitton, Cartier, Armani, Armani Jeans, Armani Collezioni, Gucci, Loewe, Dockers, Ralph Lauren, Bulgari, Dior, Dior Homme, Georges Rech, Versace, Hugo Boss, Boss Woman, Ermenegildo Zegna, Tommy Hilfiger, Dolce&Gabbana, Burberry (men/women), Façonnable, Pal Zileri, Paul & Shark, Lacoste, Pavillon Christofle, CH by Carolina Herrera, Escada Sport, James Purdey and Sons, Lloyd's, Purificación García, Calvin Klein, Caroll Paris, Amitie, and Episode. The store has its own brands (Emidio Tucci, Dustin).
Also in the complex is a branch of the Madrid-based Aldeo jewelers, carrying such jewellery designers as Boucheron, Blancpain and Hamilton.
Preciados–Callao store
The Preciados–Callao store complex in the heart of Madrid consists of 4 buildings, including the original flagship Madrid stores of El Corte Inglés and Galerías Preciados:
Calle de Preciados #3–5, 7 stories, original flagship of the chain, opened 1945 at #3, expanded 1955 to #5 - men's, women's and children's clothing and accessories including some sports apparel, cosmetics and fragrances, plus a café and restaurant
Plaza de Callao #2. Built 1964-8, architects Antonio Perpiñá Sebriá(es) and Luis Iglesias on site of Hotel Florida as the flagship of Galerías Preciados which moved from adjacent Preciados #28, now Fnac. 9 stories - home and other non-apparel departments including the Gourmet Experience food hall on floor 9
Plaza de la Puerta del Sol #10, 4 stories - sports clothing and accessories, sporting goods
Calle Maestro Victoria #6, 1 story (pet supplies)
Brands
El Corte Inglés department stores, Hipercor hypermarkets, Supercor urban supermarkets
_03.jpg){kind=link}