What: El Corte Inglés has put a new managing director, hired four months ago from Karl Lagerfeld, in charge of Sfera, its fashion chain of more than 500 stores, while reorganising the group's fashion division.

Why it is important: El Corte Inglés is rebuilding its fashion organisation around executives from fast fashion and international brands, as fashion becomes the group's main growth driver.

El Corte Inglés has hired Paula Jiménez Tamayo as managing director of Sfera. She joined four months ago from Karl Lagerfeld, where she spent seven years and rose to vice president of sales. She started at Inditex, with more than seven years at Tempe, before moving to Mango and then Converse in the Netherlands.

Sfera turned twenty-five in 2026 and is the group's main fashion brand, the only one with an independent distribution network. At the close of FY2025 it had 547 stores: 167 owned, 309 franchised and 71 corners inside El Corte Inglés. It operates in around twenty countries, mainly in Latin America, Asia, Europe and the Middle East.

The appointment coincides with a reorganisation of the fashion area. Elena Lazcanotegui now leads external and own women's brands as a single unit. She reports to Laura Moreno, head of home and fashion purchasing, alongside the men's, children's, intimates and swimwear, and Sfera directorates.

Fashion sales reached €5,882 million in FY2025. The group posted consolidated revenue of €17,247 million, up 1.14%, and net profit of €628 million, up 22.8%.

IADS Notes: The Sfera appointment follows a run of management changes at El Corte Inglés under chairperson Cristina Álvarez. In March 2026 the commercial side was reshuffled: Enrique Hidalgo was promoted to sales management director, a new country manager was named for Portugal and the purchasing department was split (Modaes, March 2026). In June, Javier Catena returned as CEO, the seventh leadership change in recent years, with every business unit now reporting to him (Modaes, June 2026). Fashion is the division being reinforced. Fashion sales rose 3.1% in FY2025-26 and the segment is described as a key growth driver, alongside a €3 billion investment plan through 2030 (Press Release, June 2026). Sfera is the group's main international vehicle. It closed FY2024 with 529 stores, owned in core markets and franchised abroad, and was preparing to launch its renovated format in Mexico. Its store and expansion strategy has been led by Ángela Goitia since late 2023 (Modaes, November 2025).

What: El Palacio de Hierro’s third-quarter net income rose 18.1% to 383 million Mexican pesos on revenue up 7.2%, after a year of declining profitability.

Why it is important: Digital sales are growing more than twice as fast as total revenue while the margin holds steady, so the group’s omnichannel investment is adding volume without eroding profitability.

El Palacio de Hierro, one of the largest department store groups in Latin America, returned to profit growth in the third quarter of 2026 after a year of declining profitability. Revenue for the quarter reached 13.957 billion pesos (666 million euros), and the margin was unchanged from a year earlier at 34.6%.

Operating income rose 6.5% to 838 million pesos (40 million euros), a slower pace than net income. Digital sales grew 17.5% year on year, according to company data.

Over the first nine months of 2026, revenue reached 42.606 billion pesos (2.0359 billion euros), up 5.5%. Retail sales, which make up the bulk of the business, grew 4.7%, while the margin was virtually unchanged at 34.5%.

Despite the stronger third quarter, year-to-date profitability remains below 2025 levels. Net income for the nine months totalled 1.648 billion pesos (78.7 million euros), down 4.22%, and operating income fell 5% to 3.156 billion pesos (150.8 million euros).

IADS Notes: The third-quarter rebound reverses the first-half trend, when sales rose 4.65% but net income fell 9.46%, with second-quarter net income down 3.56% (Modaes, August 2026). Across the region, the five largest Latin American department store groups grew combined first-half revenue by just 2.3%, against 7% a year earlier, with El Palacio de Hierro's profit down 3.5% while Liverpool's rose 25.3% (Modaes, September 2026). The third quarter turned that comparison around: Liverpool grew revenue by 2.2% and widened its gross margin to 42.8%, but its net profit fell 14.5% under Nordstrom acquisition accounting (as Modaes reported in October 2026). El Palacio de Hierro's digital growth has eased from the 22% recorded over 2025 (Modaes, March 2026) but still far outpaces total revenue. It is backed by an omnichannel programme that includes an e-concession model for digital luxury, fast delivery and new payment options (Fashion Network, May 2026).

El Palacio de Hierro returns to profit growth with an 18% rise in third-quarter net income

What: With its new 2,800 m² store in Coyhaique, Falabella now operates in every region of Chile and has completed its three planned southern openings for 2026.

Why it is important: The opening shows how a store with Click & Collect can bring a full online catalogue to cities too small for a traditional department store.

Falabella has officially inaugurated its Coyhaique store, located at Arturo Prat 451 in the city centre, which began receiving customers on 29 September. The ceremony was attended by Minister of Labour and Social Security Tomás Rau, Coyhaique mayor Carlos Gatica and regional presidential delegate Luz María Vicuña, alongside unions and local organisations.

The store carries clothing, footwear, technology and home goods, and offers self-checkout and Click & Collect for orders placed on falabella.com. It has created more than 100 jobs; a recruitment fair held in May with the municipality drew more than 500 interested candidates. Corporate General Manager Tomás Platovsky described the opening as a way to bring the company's omnichannel offer to the Aysén Region and to build long-term ties with the community.

The Víctor Domingo Silva School of Coyhaique has also joined Haciendo Escuela, Falabella's 57-year-old programme supporting schools across the country.

Coyhaique follows openings in Angol in July and Linares in August; the resulting physical network now works alongside Falabella's digital ecosystem to reach customers across the country.

IADS Notes: Coyhaique completes a southern rollout that began in Angol, where Falabella opened an 1,800 m² apparel-led store in July, bringing its Chilean network to 46 stores and offering the full falabella.com catalogue through Click & Collect (Press Release, July 2026). Linares followed with a larger store of more than 4,300 m², 95 jobs and the same link to the online catalogue (Press Release, September 2026). The three openings are part of a $900 million investment plan for 2026, 40% above the previous year, which set aside $113 million for 17 new stores across Chile, Peru and Mexico (Modaes, January 2026). The expansion runs against the department store contraction seen in most developed markets: Latin America's five largest groups, Falabella among them, grew revenue 10% and profit 48% in 2025 by combining retail with banking, credit, shopping centres and logistics (The Robin Report, September 2026).

Falabella now operates in all 16 regions of Chile