El Corte Inglés has announced a 34 per cent drop in consolidated net profits, down to €210 million, for the financial year to 28 February 2012. The privately-owned Spanish retailer saw turnover shrink by 3.9 per cent to €15.778 billion during the year, with a 13.6 per cent decline in its hypermarket division and sales at its Opencor convenience shops down by 8.6 per cent. Gross operating profit (EBITDA) was €826.3 million.
With Spanish unemployment at 25 per cent, it was no surprise that El Corte Inglés' cheaper competitors Dia and Mercadonna both reported growth in 2011. In June of this year El Corte Inglés launched a campaign offering low prices on 4,500 products.
The company employs 99,323 people, 93 per cent of which are permanent. (28 Aug)
© 2012 - ESM: European Supermarket
