In the midst of a pandemic, the company, with 88,268 employees, presented the most important workforce adjustment in its history, which affected almost 3,000 people and whose process has not yet concluded.
El Corte Inglés, one of the largest distribution companies in Spain, recorded historical losses of 2,945 million euros (more than US $ 3,500 million) in its last fiscal year, from March 2020 (fully coinciding with the pandemic) until February 2021, reported this Friday.
The group explains that these losses are largely due to provisions of 2,500 million euros (about US $ 3,000 million), intended to cover impairments of fixed assets, inventories and tax credits.
According to data released by the group, its operating losses were 445 million euros (US $ 539 million), to which are added the aforementioned provisions.
These figures contrast with the 310 million euros (US $ 375 million) that the group earned a year earlier.
The gross operating profit (ebitda) of El Corte Inglés was positive at the close of the fiscal year, with a profit of 142 million euros (US $ 172 million), although it is 88% lower than the previous year, while its turnover it decreased 31.6%.
In the midst of a pandemic, the company, with 88,268 employees, presented the most important workforce adjustment in its history, which affected almost 3,000 people voluntarily and whose process has not yet concluded.
With almost eighty years of history, it is an icon of Spanish commerce and its ninety shopping centers, especially those in city centers, are a highlight for tourists and visitors.
The Group includes not only well-known shopping centers, but also has supermarkets, DIY stores, travel agencies, insurance centers or fashion stores with a specific brand (Sfera).
By areas, the store business decreased 19% compared to the previous year, but with an increase in electronic sales, reaching a weight of 17.3% of the total volume, 132% more than in 2019.
Viajes El Corte Inglés suffered to a greater extent, due to the lack of mobility and the absence of tourists, whose sales fell 89% year-on-year, while the Insurance area maintained its sales volume, according to the company.
The Group, which has stores in Portugal, is present in Latin America through agreements with different countries to market its own food brands in their markets, including Ecuador, through Favorita supermarkets; Colombia, through an agreement signed with the Éxito distribution group; and Paraguay, where it collaborates with the Vierci company.
