El Corte Inglés revamps sports strategy, converts Sportown to Sfera

What: El Corte Inglés is set to transform its nine Sportown stores into Sfera locations, integrating its entire sports merchandise into its department stores.

Why it is important: This strategic move aims to centralize and strengthen El Corte Inglés' sports offering, reflecting the company's broader strategy to enhance and expand its fashion business, particularly through the Sfera brand.

El Corte Inglés, a leading department store group, is making a significant shift in its sports retail strategy by discontinuing its Sportown chain, which was launched in 2009 to target the youth market and capitalize on streetwear trends. The nine existing Sportown stores will be rebranded as Sfera stores, a fashion chain established in 2001 that has become a key player in El Corte Inglés' international expansion. Sfera currently operates 490 stores across eighteen countries, with a strong presence outside the Iberian Peninsula, especially in Mexico. This consolidation move comes as part of El Corte Inglés' efforts to enhance its sports offering within its department stores, which have seen an expanded sports category in recent years. The decision aligns with the company's successful fashion business growth, which saw a 16% increase in 2022, reaching 4.7 billion euros. The transformation of Sportown into Sfera also coincides with the appointment of Ángela Goitia as the director of Sfera, signaling a focus on managing the store network and pursuing further expansion. El Corte Inglés' overall performance in 2022 showcased a robust recovery, with a turnover of 15,327 million euros and a gross operating result (EBITDA) of 951 million euros, indicating a strong post-pandemic rebound.