Department Stores in Spain

PROSPECTS

In-store experience vital to driving footfall through department stores

Department stores recorded a stable performance in 2019 as retailers continued to focus on improving the customer’s in-store experience. With El Corte Inglés dominating the competitive landscape, most developing trends within the channel tend to be driven by this retailer.

El Corte Inglés enjoys established omnichannel strategy with click-and-collect services

El Corte Inglés has already adopted an omnichannel strategy by investing in a digital platform, which allows it to offer exclusive online promotions to its customers, and strengthen brand loyalty. The retailer claims that it holds a large advantage over its competitors as approximately 80% of Spaniards live within 40 minutes travelling time within one of its department stores, which offers greater proximity and supports it click-and-collect service.

Foodservice remains important aspect of department stores

The foodservice offer through department stores is continuing to increase in importance in Spain, 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. The retailer has therefore continued to develop its concepts El Club de Gourmet and Gourmet Experience which offer dedicated special spaces in some of its most popular department stores, including Plaza Callao in Madrid, which offers a rooftop terrace with food and drink stations, attracting a younger crowd.

COMPETITIVE LANDSCAPE

El Corte Inglés retains dominance over department stores leaving limited room for competitors

Department stores in Spain continued to be dominated by El Corte Inglés, with a much smaller presence held by competitors Dunnes Stores Andalucia SA and Marks & Spencer Plc with five outlets each compared to the leader’s impressive network of 91 stores in 2019. Rather than expanding this network, El Corte Inglés has concentrated on continually improving its offer to improve the consumer experience through collaborations with various global brands such as Samsung and Fujifilm which offer experiential concept spaces, and a strong focus on foodservice which helps to extend the amount of time its customers spend in its outlets.

Increasing efforts to attract affluent foreign tourists through promotion of Spain as major shopping destination

El Corte Inglés continued with its efforts to promote Spain as a major shopping destination for tourists through its expanding offer of various fashion brands in its stores. The retailer aims to position Spanish cities on the same level as other major European shopping locations, highlighting the quality of its offer and the country’s environmentally-friendly tourism, in addition to organising various sales campaigns throughout the year.

Apparel remains key area of growth for department stores

Apparel and footwear remains a key area of growth for department stores, with a high percentage of sales stemming from this product category. According to an annual report from El Corte Inglés at the end of the review period, fashion represented one third of its overall sales.

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