What: El Corte Inglés completes its supply chain sustainability plan by a new approach to packaging

Why it is important: The company is well advanced in the process and might be showing the way for other IADS members.

El Corte Inglés has set new targets related to their sustainability strategy: all plastic packaging to be removed (both in B2C and B2B) by 2025 in the private label business (a sizeable effort given the number and the size of these businesses), the whole supply chain has until 2030 to be using only renewable energy, which goes for instance through the use of vehicles using alternative fuel, concentrating a maximum of deliveries in the same go, and the review of all third party suppliers.

This is part of the Residuo Cero plan, launched in 2019, which initially looked after the supply chain in all logistic platforms, and which is now extending to the packaging.

El Corte Ingles doubles down on sustainability 

What: El Corte Inglés is preparing to go public by brushing off some stores and repaying a part of its debt and selling off three units including the Men's store in Madrid, calle Serrano.

Why it is important: The focus is on stores that the group owns, and debt will be at its lowest point in 15 years: those are strong arguments before going public.

El Corte Inglés has announced that 2 units in the Madrid region will be closed at the end of August 2022: Vaguada and Parquesur, following the non-renewal of leases concluded with the owner Unibail-Rodamco-Westfield. As a consequence, 500 employees will be affected and affected to other retail units.

In parallel, the group will be paying off EUR 1,000M of debt following the deal with insurance company Mutua Madrilena which acquired 8% of the capital and 50% of the insurance branch company, for a total of EUR 1,105M. This move is perceived as a way to make the company more attractive prior to potentially going public.

El Corte Inglés will be closing the Serrano 52 store, which was open in 2015 to house a men's store, by the 1st of August 2022. The men's offer will be transferred to the store located in Calle Serrano n°47, and has launched the process of selling off the real estate.

Two other owned stores located in Cordoba and Sevilla are also to be sold and intermediaries have been solicited.

El Corte Inglés to close stores in Madrid region and pay off 1,000M€ of debt (Spanish)

: El Corte Inglés optimizes its retail presence in Madrid and closes the Serrano men's store

What: After Falabella launched its 2021 report, the company detailed the achievements and challenges achieved in these four strategic pillars: environment, innovation, local talent and agile culture.

Why it is important: Falabella Retail launched its +Green strategy in 2021, which brings together the company's environmental efforts with a focus on conscious brands, sustainable operations and circular economy actions.

The report released good news on this matter, where the company highlighted its zero waste commitment, proposing to reduce its waste by 90% by 2035.

Through the Local Talent program the company has promoted the creative industries of its countries, for more than three years has promoted Latin American artists.

The social investment measures developed in the last year, mainly through its Making School Program (PHE), which turned 53 years old and provides benefits to students and their communities in Chile, Colombia and Peru.

The great milestone of 2021 was the inauguration of the new Falabella Parque Arauco in Santiago de Chile, the most modern department store in South America that has 25,000 m2 and offers its customers shopping experiences that combine technology with personalized services.

The company is committed to collaborative work, ensuring the professional growth of its workers. This through actions to strengthen diversity and inclusion, as well as those to promote gender equity. Of the more than 29 thousand collaborators of Falabella Retail as of 2021, 67% correspond to women, while in managerial positions this figure corresponds to 43%.

Falabella Retail Sustainability Report

Falabella AnNual report pdf.

What: Throughout the month of June, visitors will learn about the history of Dom Pérignon and the process of creating champagne thanks to a phygital museum. For the first time in Mexico, customers will also enjoy a personalization service through a laser engraving process on metal shields.

Why it is important: Champagne selling in department stores recently gained traction and generates important revenue as it's the case at Samaritaine in Paris with Veuve Cliquot and Moët & Chandon.

Visitors can also enjoy a glass of Vintage 2012 at the Dom Pérignon bar cozy space. Vintages and special editions can be purchased through Dom Pérignon's private sales service.

El Palacio de Hierro hosts the first Dom Pérignon pop-up store in Mexico

What: Falabella is joining efforts to strengthen its digital commerce strategy in the region by implementing three measures to achieve their goals.

Why it is important: This year Falabella seeks to strengthen its digital commerce strategy in all the markets where it operates. Along these lines, CEO of Falabella, during the company's last quarterly results conference, anticipated what those strategies would be that they would carry out in the region. To achieve these goals, over the next few months Falabella will implement three measures.

The first step is the launch of an optimized seller platform. "The current platform is an adaptation of the technology we acquired after the purchase of Linio. We are improving the functionalities in terms of interaction with the marketplace to track sales and inventories, which will increase the number of sellers", explained Falabella's CEO.

The second step is Falabella.com will be officially launched in the Peruvian market during the second half of the year and in Colombia in the first months of 2023.

Third, the Chilean company is also developing a pilot of its Falabella Directo service, which allows sellers to make same-day or next-day delivery of orders. This functionality will be implemented in a more open manner in the coming months.

In Peru, the anticipation was that Falabella would have important investment plans for this 2022. Specifically, that it would invest USD 711 million, of which USD 418 million, that is, about 60%, will be destined for technology and logistics. While the other 40% will be oriented to the development of physical stores in their country of origin, as well as Colombia, Mexico, Brazil, and Peru. Part of this investment they are committed to continuing to promote their e-commerce and launch new features to incorporate SMEs into the platform.

Meanwhile, the main focus will be on the marketplace platform, especially on the incorporation of sellers, the vast majority of which are small or micro-enterprises. While the second focus will be e-commerce, particularly for retailers, as well as the launch of the marketplace in Peru and Colombia.

Falabella to strengthen digital growth strategy in Peru and the region 

What: Falabella has hired Amelia, the leading company in conversational business artificial intelligence software as a digital services assistant to improve the internal experience of its 100,000 employees with 24-hour internal support, 7 days a week.

Why is it important: Falabella is looking to streamline support ticket handling and eliminating long wait times for their IT services, such as password resets and account services. In doing so they can free up time and resources of their IT team to focus on more challenging problems.

Falabella users can now easily interact with her through conversational AI for help through voice and chat.

With headquarters located in New York City, and offices in 15 countries, this technology is impacting over 200 brands across different industries internationally.

Falabella hires AI assistant to improve employee IT services (Spanish)

What: Galeries Lafayette plans to enter the burgeoning southwest Chinese market with its first boutique concept store in Chongqing this December.

Why it is important: The company signed a lease with Chongqing 100 Mall, located in International Land-Sea Center, which is set to become the city's tallest building. The French department store operator's Chongqing store will total 48,438 sq ft.

They had originally set their eyes on Guiyang, a third-tier city to the south of Chongqing, where they planned on opening a much larger store in a dolphin-shaped shopping mall called D. Place. The store was supposed to open in spring 2021.

Galeries Lafayette entered the China market in 2013, and it currently operates two stores in Shanghai, one in Beijing in partnership with Hong Kong fashion retailer I.T.

Apart from Chongqing and Shenzhen, Galeries Lafayette is also set to launch in Macau later this year at Treasure Island Hotel Macau, a new development anchored to a five-star hotel. The store will take up about 45,000 sq ft and Hong Kong-listed Forward Fashion Holdings will be its retail operator in the city.

Galeries Lafayette abandons Guiyang, opens in Chongqing's tallest building

What: El Corte Inglés and its shareholder, Primefin, entered into an agreement whereby the retail company will repurchase half of Primefin shareholding, which until today stood at 11.07%.

Why it is important: The agreement reached between the parties values El Corte Inglés at around €7 billion, in line with recent M&A transactions, and acknowledges Primefin's contractual rights.

The repurchase of the shares held by Primefin, obtained because of a loan made in the past, falls under the scope of the company's financial streamlining process.

The transaction will be financed using available funds and will not increase debt. It comes just as El Corte Inglés has bolstered its financial position to present the lowest level of debt in 15 years. The Group will use the 5.53% stake bought back to reinforce its treasury stock.

El Corte Inglés buys back half of its shareholder Primefin's equity interest

What: Mutua Madrileña and El Corte Inglés closed their strategic alliance today, implying the sale of the El Corte Inglés insurance business to Mutua Madrileña, specifically the sale of a 50.01% interest in each of its two insurance companies, SECI and CESS.

Why is it important: Grupo Mutua is acquiring 50.01% of each of El Corte Inglés' two insurance companies, SECI and CESS, for a total sum of EUR 550m.

The agreement also entails the acquisition by the insurer of 8% of the shares of El Corte Inglés for EUR 555m.

Thanks to this transaction, Grupo Mutua will become El Corte Inglés' exclusive supplier of insurance and savings products from 1 June. CESS, the retail group's former insurance broker, is converting to an insurance agency tied to Mutua Madrileña in order to market the alliance's insurance products.

This strategic alliance will allow Grupo Mutua to expand its distribution channels and access El Corte Inglés' extensive customer base, currently reached through over 2,000 points of sale in Spain, Portugal and other international locations. The agreement provides El Corte Inglés' customers with a better and more comprehensive and personalised insurance offering.

El Corte Inglés and Mutua Madrileña to operate jointly in the insurance market

What: El Corte Inglés was mentioned alongside some of the major platforms like Amazon and Aliexpress as one of the most popular platforms where Spaniards buy the most.

Why is it important: The three marketplaces were noticed for their positive evaluations from their buyers about their products.  An element that is very important for more than half of the respondents, who find it essential to consult the reviews before buying a product or service.

The study also reveals what the current consumer is like in Spain. With, 64% of Spaniards make more than one online purchase per month, and their main searches are based on products or services related to fashion (68%), electronics (60%) and travel (58%).

The study also shows that there is a growing number of offer platforms that bring together the most interesting promotions from all these online shops in a single portal.

El Corte Inglés recognized as one of the most popular platforms for consumers in Spain (Spanish)

What: El Palacio de Hierro remains in 1st place in the ranking of the 500 Companies vs. the corruption of Expansion Mx magazine.

Why it is important: The 500 Companies vs. corruption is an index to evaluate the existence, quality, publicity, and transparency of the integrity policies of the 500 most important companies in Mexico.

El Palacio de Hierro ranks 1st of the 500 Companies vs. corruption

What: Tilli inaugurated its new premises on the ground floor of Galeries Lafayette in Lyon La Part-Dieu.

Why it is important: Galeries Lafayette continues their commitment to a more circular and reasoned fashion by welcoming Tilli, a French start-up specializing in retouching and repair founded by Beryl de Labouchere, Antoinette Fine and Benjamin Michel for a first pilot deployed in the heart of its Lyon Part Dieu store.

This modern retouching is a space for reinventing clothing and linen by inviting each customer to reconnect with the figure of the craftsman through a community of passionate stylists, modellers and couturiers, called "les Tillistes".

The objective for Galeries Lafayette was for clothes to last longer and also be transformed. This is an arrival that is fully in line with the Go For Good approach initiated by Galeries Lafayette, with the aim of deploying more widely within the French network of stores in the future.

The new Tilli alteration shop at Galeries Lafayette

sOCIAL MEDIA RELEASE 

What: An extrasensory initiative called 'The Selfie Experience' arrived at El Palacio de Hierro in CDMX.

Why it is important: With this proposal, El Palacio de Hierro seeks to make instagramable backgrounds for customers to use during their visit at the department store.

Palacio de Hierro stated that it emphasized the power of selfies using extrasensory technology in order to give the photos a better finish. "The world changed the day we discovered the power of a selfie and nothing was ever the same. This form of self-portrait has evolved along with technology."

The Selfie Experience is made up of several backgrounds to take selfies alone or with friends. In the complex, there are spaces with mirrors, lights, images, and textures for people to prepare their best smile.

The immersive space for taking Instagram photos is located on the third floor of Palacio de Hierro Polanco. To enter The Selfie Experience you do not need to make a reservation or pay a fee.

El Palacio de Hierro's 'The Selfie Experience' Pictures 

El Palacio de Hierro's 'The Selfie Experience'

What: Eduard's by Breuninger in Stuttgart is celebrating 5 years of creative drinks and the finest cocktail classics.

Why it is important: From June 30 to July 14, 2022, visitors are cordially invited to celebrate the birthday of Eduard's Bar. Refreshing promotions and creative drink creations offer a well-rounded program.

Eduard's by Breuninger combines creative drinks, classic cocktails and snacks with a modern ambience. On the menu, connoisseurs will find seasonal and regional signature drinks as well as alcoholic and non-alcoholic beverage variations that are refined with homemade ingredients. This unique note can also be found in the spirits of the Eduard Breuninger series, whisky, gin, Willi pear, vodka and rum spirits.

With an inviting outdoor terrace and urban interior design, Eduard's has established itself as a place to enjoy and relax at any time of the year. Eduard's by Breuninger in Stuttgart laid the foundation for a successful lifestyle and bar concept with a strong character from Breuninger Gastronomy, which can now also be found in Düsseldorf, Nuremberg and Ludwigsburg.

Eduard's by Breuninger is celebrating 5 years

What: The 5 branches of The Mall Group were awarded the MEA Energy Awards and received investment in the modification of high-efficiency equipment.

Why it is important: The investment in the modification of high-efficiency equipment is led by Khun Maythinee Suvarnapunya, Chief Project Development Officer, and Dr. Chatree Phongwilai, Vice President-System Engineering.

The Mall Group wins MEA Energy Awards 2022

What: El Corte Inglés Group reported revenue growth of 21.93% to EUR 12.51 billion in 2021.

Why it is important: They also saw an increase in Q1 2022 performance topping that of Q1 2019.Growth was driven by healthy business momentum, cost streamlining, and good management decisions, putting the Group back on the growth track and leaving it profitable. Despite the difficulties caused by successive Covid variants, the lag in the recovery in tourism, the challenging economic environment, and the unprecedented surge in energy prices.

El Corte Inglés Group managed to post a gross profit of EUR 3.9 billion (year-on-year growth of 30.5%), EBITDA of EUR 804 million (growth of EUR 756 million), and a net profit of EUR 120 million. The retail business was the growth engine, accounting for revenue of EUR 11.3 billion, underpinned by a strong recovery in fashion, where sales increased by close to 49% from 2020. Online sales also fared particularly well, accounting for 12.3% of total department store sales.

The Group's healthy earnings performance accompanied by well-executed cost-cutting was rewarded by the main rating agencies, which raised the outlook for the credit ratings assigned to El Corte Inglés to just below investment-grade status. Their assessments were further buoyed by two significant developments: repayment of the first EUR 600-million notes issue, in March 2022; and the refinancing agreement reached with the Group's pool of banks, for up to EUR 2.6 billion, ushering in lower costs and more advantageous terms equivalent to those fetched by investment-grade issuers.

Thanks to growth in operating cash flow, the Group had reduced its debt to EUR 3.51 billion at 28 February 2022. Having since closed the transaction with Mutua, debt has come down significantly further, to stand at a 15-year low of EUR 2.56 billion.

El Corte Inglés reports revenue growth in 2021

El Corte Inglés Group consolidates its positive evolution

What: Breuninger is expanding the range of services in all department stores, with the Personal Shopping 2.0 appointment service.

Why it is important: After a successful pilot phase, the appointment service Personal Shopping 2.0 is now expanding Breuninger's stationery range in all department stores.

Breuninger offers individual advice in a relaxed atmosphere. On the desired date, customers can have specially trained consultants create their individual outfits free of charge.

The offer is not tied to a fixed minimum turnover and can be used equally by all interested parties. Whether you are looking for new running shoes, a different look, or an outfit for a special occasion.

Breuninger adds appointment service for a personal shopping experience

What: June 1 marked a big day for Shanghai residents, after a two-month COVID lockdown SKP and other shopping destinations finally resume business.

Why is it important: Shopping malls in Beijing and Shanghai have gradually reopened as pandemic control measures lifted in both cities. Among those are Beijing's SKP Mall and World Trade Center. Luxury stores in these top shopping destinations, including Louis Vuitton, Hermès, and Chanel, have seen long queues outside.

In the digital arena, e-commerce has also been steadily recovering as logistics improve in Shanghai, where many luxury houses' warehouses are based. Brands like Prada, Bottega Veneta, and Lanvin recorded positive sales performance on May 31, when Tmall Luxury Pavillion kicked off its 618 shopping carnival.

SKP opens as Shanghai ends citywide lockdown 

What: The first LEGO Shop of the future in Switzerland will open its doors at Manor Geneva.

Why it is important: The shop-in-shop follows a new concept of LEGO stores focusing on experience and digitalization with a focus for everyone, not only children.

The 100 square metre shop-in-shop at Manor Geneva will offer giant models, a digital play table, and Digibox which brings LEGO sets to life through augmented reality. The concept emphasises that the experience is for children and adults alike with a range of challenging LEGO sets meant for advanced fans.

There will be a series of events to celebrate the opening from a speed construction context, to a DJ, to a showcase with the winners of the French edition of the LEGO Masters 2021.

Switzerland's first LEGO Shop of the future opens its doors in Manor Geneva ( in French)

What: DSquared2 lands in Paris with its ecological project "one life one planet".

Why is it important: A capsule collection with low environmental impact has just been launched on the market. It will notably be highlighted in a series of pop-up stores around the world. Starting with Paris.

The brand is set up at the entrance to the Galeries Lafayette Champs-Elysées with a space of around 40 square meters, covered with a fake lawn, a skate track, and a long green tunnel.

There is a selection of accessories and basic pieces for men and women, including t-shirts and sweatshirts in certified organic cotton, jersey joggers made from a mix of organic and recycled fibers, bomber jackets in recycled nylon, or organic cotton denim made with an innovative "elasticized" yarn with 50% recycled and biodegradable content.


Galeries Lafyette Champs-Elysées, Dsquared2's green pop-up

What: El Corte Inglés' plan to transform two buildings it owns into a hotel establishment should be authorized this Wednesday by the Urban Development Commission of Madrid City Hall.

Why is it important: El Corte Inglés already owns several hotel assets through a joint venture with Grupo Matutes , which includes Only You Hotels, Aire Hotels that have recently been sold. It is, however, a real estate activity, which does not fall under Viajes El Corte Inglés, but a 50/50 joint venture between Grupo Corte Inglés and Grupo Matutes.

The new company resulting from the merger between Viajes El Corte Inglés and Logitravel plans to fully enter the hotel sector in 2022 through various modalities that will allow it to control the product and increase its profit margins, thus crossing a new step in its strategy to strengthen its vertical integration model.

El Corte Inglés to build a hotel in Madrid

What: Falabella participated in their first "Seller Day," a meeting aimed at entrepreneurs and small and medium-sized companies seeking to expand their business and add a new platform to market their products.

Why is it important: The company shared with the startups and SMEs present the entire Falabella.com ecosystem so that they could learn about the growth tools in the marketplace, and learn about logistics and distribution, among other points.

The meeting displayed in its program, different conversation panels with experts in e-commerce and interactive stands, to mention a few initiatives.

Those attending "Seller Day" were able to access exclusive benefits from Falabella.com, highlighting a 50% discount on the commission for the first three months, among other bonuses.

Falabella celebrates "Seller Day" in Chile

What: El Corte Inglés joins as every year, to celebrate International Star Wars Day, and for this reason, it has organized various actions throughout this month both in its centers and through social networks.

Why is it important: El Corte Inglés is celebrating "May, Geek Month" to attract young consumers with 15% discount on all items from the "Geek Universe", products such as comics, action figures, board games, movies, and sagas of the most relevant favorite characters. Likewise, El Corte Inglés has organized various initiatives throughout the month of May that will delight the most popular George Lucas films. Consoles have been installed so that customers can try the new Star Wars Lego game and take photos in the photo booth installed in space.

In the toy area, offers of kidults toys have been highlighted throughout the month of May and geek board games can be purchased at the centres, on the web and on the app.

El Corte Inglés launches "May, Geek Month"

What: SM Investments Corporation reported its consolidated net income grew 27% to PHP12.0 billion in the January to March period from PHP9.5 billion in the same period last year.

Why is it important: SM Retail reported first-quarter revenues of PHP74.5 billion, higher by 6% compared to PHP70.0 billion in the same period last year. Notably, overall retail revenues are 94% of pre-pandemic revenues, indicating pent-up demand, especially for non-food items since the fourth quarter of last year with the easing of alert levels. Specialty stores performed well with revenues up 11% and net income higher by 52%.

Recently, the shareholders of SM Investments approved the acquisition of Philippine Geothermal Production Company (PGPC) at the Annual Shareholders' Meeting. This is in line with SM's strong commitment to sustainability and in promoting renewable energy in the country.

The total assets of SM Investments stood at PHP1.4 trillion. Gearing ratio stood at 38% net debt to 62% total equity.

SM Investments Q1 net income grows 27%