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Outstripping the competition: What can we learn from the fierce competition between El Corte Inglés and Galerías Preciados?
El Corte Inglés, Europe's largest department store group, operates in a challenging retail environment. Its success comes not only from its size, but also from its flexible strategies to adjust as the market changes. At the same time, the disappearance of Galéría Preciados, a competitor, further highlights the advantages of the business model adopted by El Corte Inglés. The fierce confrontation between the two in the retail battlefield provides valuable inspiration for modern business management.
"We need to constantly adapt to market and consumer demands in order to survive in the fierce competition."
History and Growth of El Corte Inglés
El Corte Inglés was founded in 1934 when founders Ramón Areces Rodríguez and César Rodríguez González purchased a tailor shop in Madrid. Since then, the store has rapidly grown from a local store to a department store covering a full range of merchandise categories. With the addition of various services, such as home delivery and security measures, El Corte Inglés has gradually developed its unique business model.
Market Competition and the Rise of Gallaría Preciados
Galerías Preciados, with a similar background, opened in 1940 and quickly became a serious competitor to El Corte Inglés. The competition between the two reached its peak in the 1950s and 1960s, prompting changes in the Spanish retail industry. Seasonal discounts, advertising campaigns, air-conditioned stores and the introduction of customer loyalty cards are some of the strategies El Corte Inglés has introduced to enhance the customer experience.
Integrate resources and diversify operations
In the 1990s, El Corte Inglés underwent an important transformation with the acquisition of its largest competitor, Galerías Preciados, which not only eliminated competitive pressure but also consolidated its market position. In addition, El Corte Inglés has been moving towards diversification, opening new businesses such as travel agencies, insurance business and IT services to enhance its revenue sources.
"Integrating resources is key to business success, especially when operating uncertainties increase."
Response to challenges
However, El Corte Inglés' revenue has steadily declined since 2015, showing the drastic impact of market changes. The rise of e-commerce and changing consumer shopping habits have forced El Corte Inglés to reevaluate its business model. By strengthening online operations and digital transformation, the company strives to adapt to new market demands to maintain its competitive advantage.
Brand and Customer Loyalty
Amid this fierce competition, El Corte Inglés has built a strong brand image, with its slogan "One-stop shop for all-inclusive shopping" reflecting its broad range of goods and services. Customer loyalty is built by offering special shopping cards and discount programs, which encourage customers to continue shopping at these stores over the long term.
"Continuously paying attention to customer needs and making adjustments is another key to business success."
Future Outlook
El Corte Inglés still needs to face various challenges in the future, including increasingly fierce market competition and changes in consumption patterns. However, its historical experience and flexibility provide a basis for it to cope with difficult situations. Ultimately, the improvement of consumer satisfaction and the maintenance of their brand image will be the main driving force for companies to move forward.
In such a competitive market, can El Corte Inglés continue to maintain its advantage and successfully attract a new generation of consumers?
