The El Corte Inglés shareholders’ meeting has endorsed the 2021-2026 strategic plan, which in economic and financial terms expects to double the result and reduce the group’s debt by 60%.
El Corte Inglés loses 2,945 million in the year of the pandemic
The medium-term forecast on the company’s accounts would be based on a gross operating profit (ebitda) of 1,700 million euros (1,097 million in 2019 and 142 million in 2020), and multiplying electronic sales to represent 30% of the billing, has communicated the chain.
The shareholder support comes after the approval of the accounts for the last year, which closed with the largest losses in the history of the company: 2,945 million euros.
The president of El Corte Inglés, Marta Álvarez, has told shareholders about the last year that it has been “key for the transformation” of the business model and has added that it has made them “stronger and more solid.”
Álvarez has specified in his speech and in information transmitted by the department store chain that the group “is already in full recovery” and has advanced that, regardless of the effect of tourism, the first quarter of this year will close with figures “very close “to those of 2019.
The new strategic plan is based on a change in the company’s model, to go from being a traditional store to a business ecosystem in the Spanish market, as indicated in a note by its CEO, Víctor del Pozo.
The plan includes new business activities, such as logistics, a mobile operator (Sweno), the energy marketer, security or alarm services (Sicor), which will coexist with other existing ones such as “retail”, travel, insurance and financial services.
The board also approved, within the strategic plan, new incentive plans linked to the objectives of the company and the remuneration of the Board of Directors, which now has nine members, as well as the distribution charged to freely available voluntary reserves.