The English Court

El Corte Inglés is a global distribution group headquartered in Spain made up of companies of different formats, the main one being department stores, followed by the sale on the internet Likewise, it is a family business, as most of its actions are concentrated between relatives of the late businessman Ramón Areces and César Rodríguez González and the foundation that bears their name. Its headquarters are currently in Madrid.

Origin and history

View of the interior of the "El Corte Inglés", 1904, in New World.

The English Court of the AZCA complex (Tunisia Tower) in Madrid.

View of El Corte Inglés de la Gran Vía de Vigo (Pontevedra).

El Corte Inglés de la Avenida de Toledo de Talavera de la Reina (Toledo).

El Corte Inglés was a small store on Calle Preciados in Madrid, on the corner of Calle Carmen and Calle Rompelanzas, dedicated to tailoring and clothing for children that had been founded in 1890 and enjoyed a certain prestige. The property, and the store that was located on the ground floor, had been owned by Julián Gordo Centenera since 1930.

The situation of the property soon raised the interest of the Asturian Pepín Fernández with a view to satisfying the expansion of the business that he had inaugurated in 1934, with the association of employees of Nuevas Pañerías and the capital contribution of his cousin César Rodríguez González, and which he had baptized as Sederías Carretas because it was located at 6 Carretas street. The idea he had in mind was to buy all the properties on said block to build a new building on it to house his establishment, which he later did reality with the definitive name of Preciados Galleries.

César Rodríguez had asked Pepín Fernández to hire his nephew Ramón Areces who had just returned from Cuba at Sederías Carretas and, when he refused to hire him, he asked him to at least allow him to operate the El Corte Inglés store, located on the ground floor of the plot that he intended to acquire, while he finished the purchase of the rest of the block and proceeded with the demolition and construction of the new center he had in mind. Pepín Fernández, who, like Ramón Areces, had trained with César Rodríguez at Almacenes El Encanto in Havana, accepted this last request from his cousin and thus, on December 23, 1935, he proceeded to transfer the store on behalf of César Rodríguez and, later, on January 25, 1936, to buy the entire property for Sederías Carretas. Transferred by César Rodríguez to the tailor shop, he puts it in charge of Ramón Areces who will be in charge of its management from that moment until his death, maintaining the business throughout 1936 and the subsequent three years of the Spanish Civil War.

After the war in 1939, and in view of the need for Sederías Carretas to build the site where the first Galerías Preciados building would later be located, El Corte Inglés was moved in June 1940 to 3 Preciados street corner with Tetuán, where the El Águila Stores were located. Then it was constituted as a Limited Company, with a capital of one million pesetas subscribed in equal parts between César Rodríguez, who became the first president of El Corte Inglés S.L., and Ramón Areces, the latter contributing his part of the capital through a loan that that makes it easier. Subsequently, in successive capital increases, César will be the one to take over the majority of the shares, even though Ramón is in charge of the commercial strategy and the day-to-day running of the business.

Between 1945 and 1946, after acquiring a greater part of the building and carrying out the corresponding reform, the sales area reached 2,000m² on five floors and a sales structure was put into operation by departments, emulating the one already existing in Preciados Galleries founded in 1943.

The growth of the company continues to be continuous, so in 1952, in addition to having acquired practically the entire building it occupied, it became a Public Limited Company, in which César Rodríguez continues to be the president and majority shareholder, a position he will occupy until his death in 1966. After his death, Ramón Areces, who until then had been CEO of the company, became president and became the company's largest shareholder.

It is the competition between El Corte Inglés and Galerías Preciados, from the fifties and sixties, that will produce a revolution in the Spanish distribution market, introducing seasonal sales (January Sales), advertising campaigns (It's already spring at El Corte Inglés), air conditioning in the store, the massive use of advertising, the introduction of large-scale window dressing, shopping cards, the computerization of the point of sale, etc.

On the death of Ramón Areces in 1989, his nephew Isidoro Álvarez Álvarez took over the presidency, who continued the expansion process, always through self-financing, opacity in management and prudent investment.

The expansion of El Corte Inglés begins in 1962 with the opening of its second sales center, located in Barcelona, and continues to this day with the opening of new centers, although already diversified into different formats of which the second type was Hipercor, whose introduction takes place in Seville in 1980.

In the model of large distribution surfaces, the third and last expansion was carried out with the creation in 2006 of Bricor for the sale of decoration and DIY materials.

As can be observed^{[where?][citation required]} the expansion of El Corte Inglés up to the eighties is slow compared to that of Galerías Preciados. This is due to the policy imposed by Ramón Areces of dispensing with outside financing as much as possible and expanding only through self-financing.^{[citation required]}

Expansion in the small and medium-sized area format is also late and only begins with an agreement with Repsol in 1998 whereby El Corte Inglés creates convenience stores in the former's service stations, initially calling them Repsol-Supercor and later, in 2008, Repsol-Opencor to identify them with the chain of convenience stores that are not located in a service station created in 2000 under the Opencor name. In 2000 it also created the local supermarket format, Supercor. Finally, in 2001, Sfera appeared, dedicated to the retail distribution of consumer fashion.

On the other hand, in 1969 the expansion began towards other sectors beyond distribution with the creation of Viajes El Corte Inglés and this type of expansion continued in 1980 with the constitution of Investrónica and in 1988 with the creation of Informática El English Court, IECISA.

International expansion began in 1983 with the US acquisition of The Harris Company, a midsize department store chain. The success was not as expected and in 1998, through an agreement with Gottschalks Inc., the latter absorbed the former in exchange for ceding a 16% stake to El Corte Inglés. This expansion in the US finally meant a failed investment when Gottschalks declared bankruptcy in January 2009, which caused greater prudence in its international expansion, which was only repeated in the format of Large stores through the opening of El Corte Inglés in Portugal in 2001 and is very limited in the format of small and medium surface with Sfera as the only project and preferably through franchises outside of Spain and Portugal.

Starting in the mid-nineties, the national expansion intensified through the acquisition in 1995 of its eternal rival Galerías Preciados, which was in suspension of payments after a deep crisis that began with an escalation of indebtedness of the company pushing its main creditor, Banco Urquijo, to take control of the management in 1979 and that continued, after the expropriation and subsequent privatization of the Rumasa Group in 1983, which had acquired Galerías Preciados in 1981.

In 2001, El Corte Inglés also acquired five hypermarkets that Carrefour had to divest of when the merger between Pryca and Continente was consummated. This same year, El Corte Inglés bought all the centers that the British department store chain Marks & Spencer had in the peninsula (nine centers in total) due to its abandonment of the Spanish market (although maintaining the centers in the Canary Islands) to focus on its original market, the British.

In March 2018 El Corte Inglés closed the store it had on La Rambla in Barcelona and in July of that same year the stores it had in the Modoo Shopping Center in Oviedo

El Corte Inglés announced in May 2019 the reform of the center of Arroyosur (Madrid). The center, which was dragging heavy losses, will reopen in 2020 under the name of MAD-FD Fashion District

At the end of November 2019, El Corte Inglés reported the sale of its information technology subsidiary IECISA, to the French group GFI, for an amount of 300 million euros in cash, in exchange for the business group controlled by Mannai Corporation, will take over 100% of the subsidiary.

In June 2020 El Corte Inglés buys the private security and services company MEGA 2 for 28 million euros

Company

Night view of El Corte Inglés de la Avenida de España de Albacete, Spain, illuminated with the color of the company.

Numbers

In the retail sector, according to the "Global Powers of Retailing" conducted by Deloitte Touche, in 2013 it was ranked third in Spain by sales volume behind Mercadona and Inditex and ranked 54th in the world, with USD 17,143 million. In 2020 it had fallen to 97th worldwide.

As a family business, and as of 2008,^[update] El Corte Inglés was in second place in Spain (behind only Banco Santander) and the 66 in the world.

Both sales and net profit rose steadily for more than a decade until 2007, when sales of almost €18 billion and profit of €716.8 million were recorded. Since then, and coinciding with the economic crisis that began in 2008, the trend has been downward. The results of the consolidated group in 2012 reached a net amount of 14,552.45 million euros (12,507.6 in 2021), a net profit of 171.5 million euros (120 in 2021) and a gross operating profit (or ebitda) of 735 million euros (804.3 in 2021). In 2021 the group obtained a positive result after the historical losses registered in 2020 of 2,945 million, largely motivated by the covid-19 epidemic.

Global results

The revenue and profit figures (gross -ebitda- and net) are expressed in millions of euros.

Source: El Corte Inglés

Billing

Billing of El Corte Inglés between 2002 and 2021 (in millions of euros)
Source: El Corte Inglés (Corporate Information)
Graphics produced by: Wikipedia

• The El Corte Inglés Group consolidates in 2021 the improvement of its business activity with an increase in the business figure of 22%, up to 12,508 million euros. The positive evolution of the business drives the Ebitda up to 804 million, while the consolidated net profit is 120 million euros.

Net profit

Net benefit of El Corte Inglés (in millions of euros)
Source: El Corte Inglés (Corporate Information)
Graphics produced by: Wikipedia

Shareholding

El Corte Inglés S.A. is a family business, founded by Ramón Areces. Although the company is characterized by a jealous privacy in its information, it has been indicated repeatedly that the largest package of shares is in the hands of the Ramón Areces Foundation, with 37% of the capital by bequest of its founder. At the time, Isidoro Álvarez controlled that package as president of the Foundation, together with his own shares, which would be between 15% and 27%, which made him the largest individual shareholder in the company.

IASA Securities Portfolio, with 22% is the second largest shareholder.

Currently, around 9% would be in the hands of the children of Luis, brother of Ramón Areces, through the Ceslar Corporation.

About 3% in equal parts between the four Areces Fuentes brothers, sons of Celestino, Ramón's other brother, which they acquired by inheritance and liquidation of the instrumental company Trust. In 1999 they liquidated this and distributed the shareholding equally. Subsequently, after a lengthy judicial conflict, they have sold their shares to El Corte Inglés.

Ingondel S. L, constituted by descendants of César Rodríguez, held 6% of the capital of Corte Inglés. It was acquired in 2009.

7% would be in the hands of Cartera Mancor S. L. also made up of descendants of César Rodríguez, through Paloma García Peña.

About 3% would be found among other members of the board of directors and the rest would be distributed among the treasury stock and some 3,000 directors and executives of the firm itself. The company presumes that its shareholders are always employees of the company and there are limitations on the transfer of shares.

The Board of Directors of El Corte Inglés is currently made up of:

• Marta Álvarez Guil. elected president of the company on July 11, 2019.
• Cristina Álvarez Guil.
• Fernando Becker Zuazua.
• Manuel Pizarro Moreno.
• Javier Rodríguez-Arias Ambrosini
• Cartera Mancor, S.L, represented by Paloma García Peña.
• Corporación Ceslar, represented by Ana Carlota Areces Galán.
• Grupo Mutua (represented by D. Ignacio Garralda Ruiz de Velasco)
• D. José Ramón de Hoces Íñiguez (Consejero Secretario)

Address history

Director Managing Director or Chairman:

• César Rodríguez González
• Ramón Areces
• Dimas Gimeno
• Jesus Nuño de la Rosa
• Marta Alvarez Guil

Areas of activity

El Corte Inglés in Alicante, Spain.

The business group is divided into the following areas of activity, which are usually configured commercially as companies whose shareholding belongs wholly or overwhelmingly to El Corte Inglés S.A.:

• El Corte Inglés S.A., parent company. Its activity is the classic of the company since its birth, that is, the distribution through large-surface warehouses by departments. Although their share of the group ' s income is gradually declining, in 2010 it still reached 59 per cent of total income and about 63.7 per cent of net profit. A 28 February 2013 El Corte Inglés has 86 centers, 84 in Spain and 2 in Portugal.
• Hypercor. Large surface dedicated to the distribution of food and bazaar. It is born before the penetration of French capital in the food distribution sector in large areas during the 1980s through Alcampo, Pryca and Continent, these two later merged and now use as the only brand in this format that of Carrefour. On 28 February 2013, Hipercor consists of 42 centers in Spain.
• Bricor. Large surface dedicated to the distribution of decoration and DIY items. It is born in response to the concentration of the sector by the Groupe Adeo that was formed from the Auchan group, owner of Alcampo among others, and has in Spain the brands Leroy Merlin, Aki and Bricomart. It has five centers in Spain. On 28 February 2013, Bricor has 16 stores, 14 in Spain and 2 in Portugal.
• Supercor. Medium surface in proximity supermarket format with presence in Spain and Portugal. It emerges to compete with the feeding chains of proximity to its concentration at the end of the nineties as for example Caprabo, Eroski and Mercadona mainly, although without discarding some formats of the DIA chains, until the year 2010 belonging to the group Carrefour and Sabeco belonging to the group Auchan respectively. In Portugal, there are 9 Supercor stores.
• SuperCor Exprés. Supermarkets of proximity and reduced space. It is a new model adopted by the company in December 2011.

The sum of the convenience stores (Supercor, Opencor and Supercor Exprés) as of February 28, 2013 make a total of 238.

• Sfera. Young fashion stores and accessories in medium and small surface format with 68 centers located in Spain and the 3 located in Portugal and franchised ones located in Saudi Arabia, Baréin, Belgium, Egypt, Greece, Kuwait and Mexico. It is born in response to other chains of the type of Scandinava H luminousM or the Spanish Mango, Zara and Springfield, the latter two of the Inditex and Cortefiel groups respectively.

In information and communication technologies, it has three companies that, in order of appearance, are:

• Investronic. Computer and telephone wholesaler.
• Telecor. Marketing of telecommunications services for the consumer and the company.

In the services sector, the El Corte Inglés group is represented by:

• Grupo Viajes El Corte Inglés. Matrix of a group of companies dedicated to tourism from both the wholesale and retail point of view. As a travel agency, there are 599 delegations around the world of which 506 are in Spain and 93 are abroad.
• El Corte Inglés Insurance Group (CESS). Dedicated on the one hand to the insurance and financial and real estate mediation brokerage through the Insurance and Services Center with offices open to the public in the centers of El Corte Inglés, and, on the other hand, with Insurance El Corte Inglés S.A., life insurance and accident insurance and management entity of plans and pension funds with activity in Spain and Portugal. It has 105 delegations mostly located in the El Corte Inglés shopping centres.
• Financial El Corte Inglés S.A. as a purchasing finance company to customers and distributor of El Corte Inglés Shopping Card. With a presence in Spain and Portugal. 51% of the social capital belongs to Banco Santander since 2014.
• MEGA 2 third party security and services company with presence in Spain and Portugal.
• Sicor Group Services related to Physical and Electronic Security, Integral Services, Cleaning and Maintenance, Logistics, Special Employment Centre and ETT
• Sweno telephony company.
• Sweno Energy energy company for the home and the companies.
• Bitcor company of cryptocurrencies.
• Sicor Asiste Teleasistencia a personas mayores

E-Commerce / Digital

Regarding electronic commerce, El Corte Inglés is the first company in number of customers in Spain, with 3.7 million customers in 2011. In 2013 there were 3.5 million customers and 137 million visits.^{[citation required]} 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. Since 1999 its general director of Electronic Commerce and Distance Sales Division has been Ricardo Goizueta Sagues and its digital director has been, since 2012, José María Fernández Ortega. According to Ricardo Goizueta, the digital business presents a "sustained growth above 35% in recent years, more than eight million unique customers per month".

Other notable participations

As 100%-owned instrumental or auxiliary companies of the main business, unless otherwise indicated:

• Industries and Confections S.A. (INDUYCO) Integrated in the group in 2010
• Ason Real Estate of Arriendos S. L.
• Constructions, Promotions and Facilities S.A.
• Editorial Centro de Estudios Ramón Areces S.A.
• Tourmundial Operators S.A.
• Parinver S.A. (75.83 %)

As minority interests in other businesses:

• 50 % in Sales Point Management S.A. (Gespevesa) that manages the Opencor stores at Repsol service stations
• 50 % in Sephora Cosmetics Spain S. L.
• 6.15 % in Euroforum Escorial S.A.
• 4.36 % in Thematic Park of Madrid S.A.
• 1.7 % in IAG

Business model

The English Court in Vila Nova de Gaia, Porto, Portugal.

El Corte Inglés in Barcelona, Spain.

The business model of El Corte Inglés, like that of Galerías Preciados at the time, arose from transplanting the American department store model to the Spanish market at a time when Spain emerged from commercial isolation and economic autonomy.

Thus, its business model is configured as the store where you can buy everything, hence its motto The store of all your purchases, offering a wide variety of items with all the qualities available to cover to all types of users, a certain specialization when divided into departments, a value-added service around the purchase (home service, wedding and shopping lists, tailoring and repairs included in the price, etc.), and the guarantee of quality and customer satisfaction by refunding the price paid: If you are not satisfied, we will refund your money.

The previous model is currently based on the performance of the activity on the following actors:

Customers

The sales model expressed above is still valid today. Thus, in its corporate social responsibility document, it is stated that the five pillars of commitment to the client are quality, service, assortment, specialization and guarantee.

These five pillars have produced significant customer loyalty and in 2011 its centers received some 630 million visits.

In the food section, El Corte Inglés has launched a white brand for basic baskets, Aliada.

The El Corte Inglés Shopping Card, whose introduction dates back to 1968, is one of the most popular in the pocket of Spaniards, with 11.58 million active cards in 2017. Holders of the shopping card have of an automatic grace period of one month in the payment of the monthly settlement and the possibility of deferring without interest (with management expenses) the payments to three months, or with low interest up to 36 months. They are also entitled to at least two hours free in paid car parks in the centers and with the card it is possible to buy any product sold in the centers belonging to the El Corte Inglés group. Since 2006, the card has also allowed payment for purchases at Repsol group service stations.

In the six months prior to November 2012, the Public Administration awarded El Corte Inglés tenders worth more than 38 million euros.

Human resources

In 2011, its workforce consisted of 99,323 employees compared to 102,699 in 2010, of which 93% have a permanent contract and 71% have a full-time job. His average age is close to 39 years, with 13 years of experience. By gender, there are 37% men and 63% women, although in the category of directors and managers there are more men than women.

According to the 2012 annual report, its workforce was made up of 96,678 workers, of whom 94% have a permanent contract and 64% are women.

The traditional relationship of El Corte Inglés with its workers has been formal, familial and paternalistic, trying to establish reciprocal links for feedback between the company and your employees. Through entities included in the group of companies, the company provides training and aid for education, financial services and subsidized or financed acquisitions of goods and services.^{[citation required]}

On the negative side, El Corte Inglés has received complaints of discrimination against women, union persecution of class unions, and direct responsibility in cases of labor exploitation. sale in all El Corte Inglés and Hipercor shopping centers.

In most centers of the El Corte Inglés group of companies, union elections are usually won by the majority of Fetico or FASGA, a national minority union accused of being a yellow union by the UGT and CCOO. On the other hand, companies in the Groups such as Induyco are linked by reports from organizations such as Intermon Oxfam on problems of precariousness and labor exploitation in Third World textile production centers.

Suppliers

According to the company, the relationship with suppliers is based on a constant relationship and collaboration within a framework of mutual trust. Likewise, in the last three years^[when?] the company suggests that its suppliers sign an ethical commitment in which different aspects of quality and excellence as well as respect are included. to labor and environmental rights.^{[citation required]}

Regarding vertical concentration, this was attempted very early on, especially in the textile sector when Ramón Areces and other shareholders of El Corte Inglés founded Induyco in 1949, which became a public limited company in 1955. Induyco, with no ownership relationship with El Corte Inglés, it had the latter as an exclusive client and its employees were offered benefits as if they belonged to the same group. Currently, Induyco continues to have El Corte Inglés as its majority client, but without exclusive rights, although the shareholder structure is similar to the original and its president was also Isidoro Álvarez. In 2010 El Corte Inglés integrated Induyco into its corporate structure and in 2012 it ceased its activity. In the textile field, Confecciones Teruel was also created in 1975 and Industrias del Vestido in 1976, to complement Induyco. majority capital of the Induyco group, of which Investrónica and Investrgen are also part. Its creation could have been motivated by the labor conflict that reached Induyco in those years.

In the field of supplying specific material for sale, Móstoles Industrial was created in 1966 in the same way as Induyco. Móstoles Industrial, contrary to the previous one, continues to have the group as its almost sole client, and exclusively, without having any ownership relationship with it. Its best-known activity to the general public is the manufacture of Forlady kitchen furniture.

On the other hand, for the management of real estate development, Construcción, Promociones e Instalaciones S.A. was created in 1976. which is made up of the group's capital in its entirety and is responsible for everything from the construction of new centers to the reforms of existing ones.

Advertising and promotion

El Corte Inglés is one of the companies that invests the most money in advertising. In 2011, the El Corte Inglés Group was the leading advertising group in Spain with an investment of 171.3 million euros and, as an individual advertiser, El Corte Inglés was the third in Spain with an investment of 99.8 million euros.

El Corte Inglés periodically carries out large advertising campaigns, such as the Fantastic Week and the Eight Golden Days, to announce sales on its products. At Christmas, it organizes the Cortylandia entertainment show in its main establishments.

In addition, El Corte Inglés, as part of its business culture, participates financially in numerous sponsorship activities, which also serves as a form of promotion. An example of this is the El Corte Inglés Rally, an automobile event that was held under that name in the Canary Islands from 1977 to 2001.

For these reasons, and due to the enormous power and influence of El Corte Inglés, it has been accused of causing limitations to press freedom or the publicity of opinions.

Ads and advertisements for El Corte Inglés also play an important role in Portugal. They are the same as in Spain and are translated into Portuguese.

Geographic presence

El Corte Inglés has 94 centers in its original format, with a presence in Spain and Portugal, distributed in the following cities:

Brands

General

• The English CourtGeneral.
• Hipercor: General (only in Hipercor centers).
• Supercor: Supermarkets in the cities.

Telecommunications

• Sweno: telephony.
• Telecor: telephony.

Cryptocurrencies

• Bitcor: Criptocurrencies.

Security

• Sicor: private security.

Others

Food

• All right.: white mark or distributor.
• Special Line: dietary foods.

Culture

• Cultural area: cultural events, exhibitions, literary, cinematographic, musical and painting awards, sponsorships...
• Imprescindibles. Collector's Edition. The English Court (DVD)
• Cineclub: classic movie DVD collection.
• Pitiflu: children's guide - workshops, stories, magic shows, puppet performances and other proposals related to the circus and theatre for children.
• Blonde 1860: bookstore

Since 2003, the cultural department of El Corte Inglés has also used the names Espacio de Música, Espacio de Cine and Espacio de Libros, which you are currently using as online and offline brands.

In 2011, a new store concept called Mundo Cómic was created, a specific space dedicated to comics and graphic novels, as well as associated merchandising, video games and films based on comics.

Appliances, electronics and computing

• Digrato: coffee makers and capsules monodosis of coffee.
• Inves: IT.
• Saivod: appliances and electronics.
• Ansonic: appliances and electronics (only in Hipercor centers).

Sports

• Boomerang: sports.
• Runfit: sports (only in centers Hipercor).
• Sportown: ECI Group Sports Shop.

Clothes

Sfera Shop in Madrid.

• Allah: clothes.
• Dustin: clothes.
• Easy Wear: clothes
• Emidio Tucci: man suits.
• Edenphasis: clothes.
• Formul@ Joven: clothes.
• Gloria Ortiz: clothes and accessories.
• Lloyd's: clothes.
• Privium: home clothes.
• Sfera: clothes.
• Yera: clothes.
• Unit: clothes (only in Hipercor centers).
• Di-Bye: exclusive clothing in outlet centers.

Others

• Urban-Chic: home (only in El Corte Inglés centers).
• Urban-Class: home (only in El Corte Inglés centers).
• Casa Actual: home (only in centers Hipercor).
• The Shop in Casa: distance sale (Television / Internet).
• Pure Line: cosmetics.
• Oleada: cosmetics.
• Oralli: travel accessories.
• Doublezer: loyalty card.
• Plantea: dermocosmetic.
• Primeiti: flash sales website of Grupo El Corte Inglés.
• Veckia: Cosmetic (only in centers Hipercor and Supermarket El Corte Inglés)