GD: record losses for the Spanish chain El Corte Inglés
A 31.6% drop in turnover, historical losses of € 2,945 million and a cut of thousands of employees
The stainless Spanish consumer and retail brand El Corte Inglés ended its last year with a 31.6% drop in turnover, historical losses of € 2,945 million and the departure of 3,292 employees. Without the provisioning measures of 2.5 billion euros, aimed at covering the devaluation of properties, inventories and tax credits, the net losses would have reached the record figure of 445 million euros, clearly diverging from the 310 million profits earned. last year. Ice brought it back today from Madrid.
In the retail division, the largest in the Group, there was a decrease of 19.1% with total turnover that went from 13,014 million euros to 10,524 million. The restrictions and forced closures of the various plants imposed by the pandemic have led the company to start a process of transformation towards a more digital and flexible business model. As a direct consequence, e-commerce grew by 132%, representing 17.3% of the total share of the Group's retail sales (net increase compared to 5.8% in 2009).
The stop to mobility and the lack of national and international tourism represented one of the most demanding challenges for the company. Not surprisingly, the branch most affected by the pandemic was Viajes El Corte Inglés, which recorded an 88.6% reduction in revenues, from 2,732 million to 309 million euros. On the other side of the coin, however, it should be noted how El Corte Inglés Seguros managed to keep its sales volume almost unchanged (-2%), with a turnover of 211.1 million euros and with an Ebitda (operating margin gross) improved by 3.1% to 92.5 million. The brand's typically large warehouses sell a wide range of products from the music, film, portable and home electronics, furniture, hardware, books, clothing, groceries, gourmet food and even automobiles and real estate industries.
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