Financial and Economical Situation of El Corte Inglés

Today I want to have a closer look at the economical and financial situation of one hypermarket in Spain: El Corte Inglés. A hypermarket is a “very large commercial establishment that is a combination of a department store and a supermarket.” El Corte Inglés is the biggest department store chain in Europe and third in the world. To the El Corte Inglés group belong amongst others: Hipercor, Telecor, Opencor, Supercor and Sfera. The El Corte Inglés group had following operating figures in 2010 and 2009 in Millions of euro:

In 2010 the group has suffered a big decline because of the crisis in consumption in Spain within their net income (-13.5 %) however this decline could be stopped with special promotions. Thus the margins were lower but the total revenue could be stabilized at 0.3 % to 16,413.42 million Euros in 2010. The “El Corte Inglés Department Stores” contributed 58.6 % or 9,611.97 million Euros (2009: 9,650.50 million Euros) to the turnover of the group. Furthermore it contributed 64 % or 392.40 million Euros (2009: 383.66 million Euros) to the consolidated profit, this is an increase of 2.3 % in 2010.

The group increased its own funds and had a significant increase of its tangible fixed assets due to the opening of new department stores. At the end of 2010 the groups’ investments were as followed:

• Tangible fixed assets: 810.32 million Euros
• Intangible fixed assets 67.33 million Euros
• Financial fixed assets 137.49 million Euros

El Corte Inglés does not seem to have serious financial problems. They even employed 1,147 people in hard times. The situation of the market remains difficult but with cost savings and efficient management it is manageable for the group.

Resources, last accessed 26.11.2011:

Consolidated group: http://www.elcorteinglescorporativo.es/elcorteinglescorporativo/elcorteinglescorporativo/portal.do?IDM=26&NM=1

Definition: http://www.answers.com/topic/hypermarket

Informe Anual 2010 (Spanish): http://sgfm.elcorteingles.es/SGFM/ECI/recursos/doc/Datos_Economicos/Memorias/2010/Ingles/1452536366_288201113317.pdf

Sales turnover and net income: http://www.elcorteinglescorporativo.es/elcorteinglescorporativo/elcorteinglescorporativo/portal.do?IDM=3026&NM=3

Stabilized its total revenue (German): http://www.handelsblatt.com/unternehmen/handel-dienstleister/el-corte-ingles-opfert-margen-fuer-umsatz/4555124.html

1 comentario / 26 Nov 2011 por Marie Glueck
IMSD /

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