El Corte Inglés reorganises its top management structure
What: El Corte Inglés has announced a new structure at the top and the departure of Jose Maria Folache.
Why it is important: This development underscores the ongoing evolution of El Corte Inglés's management structure, as the company balances retail expertise with new strategic initiatives.
El Corte Inglés has dismissed José María Folache, its Retail Director and one of two general directors, due to strategic disagreements with newly appointed CEO Gastón Bottazzini. The decision, communicated directly by Bottazzini, comes as the company prepares to present a new strategic plan by year-end. Folache, who joined in 2022 following the departure of former CEO Víctor del Pozo, brought extensive retail experience from leadership roles at Carrefour España, Tous, Parfois, and Suárez. This marks his second departure from El Corte Inglés, having previously left in 2012 after serving as deputy purchasing director. The company's retail division, which Folache overseen, generated EUR 12.845 billion in revenue last year, representing a 3.8% increase from the previous period. Bottazzini, who reports to the executive committee chaired by Marta Álvarez, plans to restructure the organisation with multiple general directorships reporting directly to him.
IADS Notes: As reported in October 2024, El Corte Inglés partnered with McKinsey to develop a new strategic plan, signaling a significant shift in its approach to retail transformation. This followed the appointment of Gastón Bottazzini as CEO in July 2024, bringing valuable experience from Falabella and McKinsey. The company's strong performance, with a 5.4% increase in total transaction value and record-breaking recurring net income in June 2024, suggests that this leadership change aligns with its broader strategy to maintain growth momentum. The dismissal of Folache reflects the company's commitment to its new strategic direction, as it prepares for the next phase of growth through 2030, emphasising traditional retail with increased digitalisation.
