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Spain's El Corte Inglés Sees Revenue Up 50.2%, Despite Tourism Challenges

Published on Jul 28 2021 8:46 AM in Retail tagged: Featured Post / Retail / Spain / El Corte Inglés / travel

Spain's El Corte Inglés Sees Revenue Up 50.2%, Despite Tourism Challenges

Spanish retailer El Corte Inglés has reported a 50.2% increase in revenue in the first quarter of its financial year, to €2.51 billion, which is roughly on a par with what the group reported in the first quarter of 2019.

However, the department store operator noted that while its retail business has seen a strong recovery from the COVID-19 pandemic, its tourism and travel arm still faces challenges.

El Corte Inglés said that its investment in e-commerce over the past year has helped to boost online sales at the group, which are up 119% on the corresponding period in 2019.

EBTIDA for the quarter came in at €81 million, a more than €276 million increase on the same period of 2020, while operating cash flow has increased by more than €1 billion.

Retail Sales Increase

It said that sales in its retail business were roughly on a par with those reported in 2019, despite continued restrictions, with turnover increasing 47.8%, gross margin up 77.5%, and EBITDA €254 million higher.

The group recently announced the expansion of its Supercor supermarket business.

Within its non-retail business, its insurance business, Seguros, reported 'stable sales' of €54 million in the first quarter, while its travel business has seen 'an improvement' in EBITDA, despite the continuation of travel restrictions during the period.

Supermarket Acquisition

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In terms of future development, El Corte Inglés recently acquired the Sanchez Romero supermarket chain, increasing its presence in high-end grocery in Madrid, while it is also integrating its Viajes El Corte Inglés business with Logitravel, creating 'one of the travel leaders in the Spanish-speaking market'.

It  recently launched Sweno Communication, a new data communications business, and Sweno Energia, an electricity and gas marketer, as well as SICOR Alarmas, a home security business.

It has also taken steps in recent months to boost its sustainability footprint.

© 2021 European Supermarket Magazine. Article by Stephen Wynne-Jones. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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