Department Stores in Spain

2021 DEVELOPMENTS

El Corte Inglés accelerates its omnichannel shift

Selling everything from apparel and footwear to food, homewares, toys and books, El Corte Inglés (‘the English cut’ – it was originally a tailor’s shop whose origins stretch back to the 19th century) is the only notable department store chain in Spain, accounting for almost all retail value sales in this category. El Corte Inglés is synonymous with the term ‘department store’ in the minds of local consumers.

Department stores struggle to rebound from online shift arising from the pandemic

Having plunged by almost a third in 2020, the retail current value sales of department stores recovered only partially during 2021. Even before the onset of the pandemic, retail current value sales through this channel had been under pressure due to the emergence of e-commerce, but COVID-19 accelerated this trend.

Demand from international tourists remains subdued

International tourists have traditionally been a significant source of demand for department stores in Spain. However, international tourist arrivals virtually ground to a halt during spring 2020 and remained relatively subdued in 2021.

PROSPECTS AND OPPORTUNITIES

El Corte Inglés will double down on its omnichannel strategy and seek to diversify

El Corte Inglés will double down on its omnichannel strategy during the forecast period. It will also look to expand into new lines of business.

El Corte Inglés steps up its effort to woo international tourists

The annual rate of growth in the retail current value sales of department stores will slow over the course of the review period and remain well below its pre-pandemic level, with the growing popularity of e-commerce its main source of weakness. On the other hand, demand growth will be supported by an anticipated post-pandemic economic rebound and a revival in inbound tourism, particularly from such places as Latin America, the Middle East, Russia and China.

El Corte Inglés will pay more attention to food

In the forecast period, department stores will continue to concentrate their efforts on making the customer experience the centre of strategy. In this regard, the foodservice offer through department stores will continue to increase in importance, with El Corte Inglés becoming a reference for “foodies”, not only amongst local consumers but also foreign tourists who are attracted to classic Mediterranean flavours and dishes.