El Corte Inglés exits iconic Portal de l'Àngel store as part of strategic asset divestment
What: El Corte Inglés is permanently closing its department store in Barcelona's iconic Portal de l'Àngel on August 31, following the sale of the building to Redevco Iberian Ventures for over EUR 200 million. The company is shifting its focus to its Plaza Cataluña location, where a renovation is planned to streamline its commercial offerings. El Corte Inglés is adapting to changing consumer trends through store closures and business diversification.
Why it is important: This closure marks a significant shift in El Corte Inglés' business strategy as it continues to divest assets to reduce liabilities and strengthen its financial position. The sale of the Portal de l'Àngel building is part of a broader trend where the company has earned EUR 660 million from asset sales over the last four years, leading to a substantial increase in recurring net profit. El Corte Inglés' strategy highlights the need for traditional retailers to adapt and diversify in a competitive market.
El Corte Inglés, a symbol of Spanish retail for over half a century, is adapting to changing consumer trends by closing several stores and diversifying its business. The company is set to close its iconic store in Barcelona's Portal de l'Àngel on August 31, a strategic move to reduce its asset portfolio and liabilities. The building, sold to Redevco Iberian Ventures, will be transformed into a mixed-use property featuring retail and office spaces. This closure is part of a broader restructuring, which includes moving sports sections to a renovated store in Plaça Catalunya. It has seen a notable improvement in its financial performance, with recurring net profit reaching its highest level since 2009.
The Barcelona closure follows other recent shutdowns, including a store in Madrid's Méndez Álvaro shopping centre and an outlet in Teruel. El Corte Inglés has also sold about 25% of its SuperCor supermarket chain to Carrefour Group, focusing on larger formats. Despite these challenges, El Corte Inglés continues to diversify its business beyond department stores, venturing into supermarkets, travel agencies, and insurance. This strategy aims to keep the company competitive in an increasingly challenging retail environment, balancing traditional brick-and-mortar operations with evolving consumer preferences and the growth of e-commerce.
