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ARCHIVED - El Corte Inglés in Cartagena to be downsized and one Murcia store closed
The store in the Myrtea mall (El Tiro) in Murcia is to be closed down altogether
The department store chain El Corte Inglés, arguably the most prestigious of its kind in Spain, has announced a re-structuring plan which involves the closure and downsizing of numerous establishments which were opened during the economic boom in the early years of this century, including the ones in Cartagena and at the Myrtea shopping mall (formerly El Tiro) in the northern outskirts of the city of Murcia.
Such is the scale of the strategy that one quarter of all El Corte Inglés stores are to be affected on one way or another, being reduced in size, offered for sale or simply closed down. The El Tiro store falls into the latter category and is destined to be “transformed into real estate” (i.e. either sold or rented out) while in Cartagena the plan is to “reduce the number of square metres” (and, by implication, employees) in the store.
This reduction in staffing levels is likely to be an expensive one for the chain in the short-term. On average each at El Corte Inglés store there are some 300 staff who have been employed for an average of ten years, meaning that the redundancy payouts at each one closing down could amount to approximately 3 million euros.
Among other stores condemned to closure, apart from the El Tiro/Myrtea outlet in Murcia, are those in the popular Xanadú mall in Arroyomolinos (Madrid), Vistalegre (also in Madrid) and others in Sevilla, Mijas Costa (Málaga), Ademuz (Valencia) and Valladolid, while downsizing is the preferred option in Elche, Éibar, Linares, Algeciras, El Ejido, Jerez, Talavera and Leganés.
It can be inferred that this decision by El Corte Inglés, in the eyes of some the equivalent of John Lewis among UK department stores, reflects the changing shopping habits of people in recent years. With more and more purchases being made online the competition is stronger and El Corte Inglés may have failed to capitalize on its reputation for quality by strengthening its internet presence, not only in terms of goods such as clothes but also in respect of its ticket selling and travel agency operations.
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