Spain: FY results and developments

Date : 18 August 2020

Lucy Bellotti

Retail Analyst

El Corte Inglés reveals an increase in turnover and profits during 2019. Meanwhile, Cepsa and Glovo have expanded their partnership and extended it to Portugal. Separately, Alibaba’s Alba Ruiz highlights the development of the new retail effects since the impact of COVID-19. 

El Corte Inglés positive 2019 FY results

El Corte Inglés recorded a profit of €310m in its 2019 financial year, an increase of 20% compared to 2018. The retailer also reported a revenue of €15.3 bn. The positive 2019 results put the company in a good position to handle the impact of the coronavirus pandemic. 

The group indicated its debt was reduced by €638m, to €2,729m. Meanwhile, El Corte Inglés has invested €344m to maintain quality standards in its shopping centres and on its ecommerce platform during the coronavirus pandemic.

Cepsa and Glovo expand delivery partnership

Cepsa and Glovo plan to reinforce their alliance and extend it to Portugal. The partnership began in April 2020, during the initial phase of the coronavirus pandemic. The service started with over 70 Carrefour Express stores located in Cepsa service stations and 60 Depaso stores located across Spain. 

Cepsa intends to expand its offer to more shoppers by reinforcing its agreement allowing Glovo delivery available from 150 Depaso and Carrefour Express stores. The partnership allows Glovo to deliver Cepsa products including food, hygiene, and cleaning products from stores in Portugal and Spain. 

Alibaba discusses the ‘new retail’ experience

Alba Ruiz, Alibaba’s head of business development for Spain and Portugal outlined the evolution of new retail. Ruiz stated ‘Spanish companies have been agile when it comes to reinventing their business through digitisation, with the introduction of QR codes and home deliveries’.

Furthermore, Alibaba has stated for companies to be successful they must adapt to the current market situation. Therefore, Spanish companies have moved towards ecommerce and digitalising services to meet shoppers’ demands.

Ruiz explains Alibaba’s evolution of new retail ‘is a hybrid experience model, which combines online elements and offline, which is a success in China and a benchmark in Europe and China no longer differentiate between online and offline shopping but focuses on providing a great personalised shopping experience.’

Alibaba continues to implement initiatives to support the new retailing reality, which has seen the implementation of Alipay, a contactless payment solution. The group is helping other companies to engage with payment tools to further target more shoppers.  

 

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