Feb 10, 2017
El Corte Ingles creates more than 340,000 jobs in Spain
Feb 10, 2017
Leading Spanish retailer El Corte Ingles, owner of an eponymous department stores chain and companies such as Hipercor, Supercore, Sfera and Bricor, created directly or indirectly more than 340,000 jobs in Spain in the financial year ended 28 February 2016, generating over €25 billion in economic output and accounting for 2.4% of Spain’s GDP.
According to a study from KPMG, El Corte Ingles made a €9.6 billion direct contribution to the Spanish economy in the period. This includes spending on purchases from more than 31,000 wholesalers, of which 86% are based in Spain.
The indirect impact totalled more than €6 billion, including all business carried out by El Corte Ingles wholesalers with their respective suppliers.
Annual direct, indirect and induced employment was estimated at 340,000 jobs during the period, accounting for 1.9% of the total number of jobs in Spain. The balance is made up of direct employment of 150,000 jobs, indirect employment of 20,000 jobs and induced employment of 65,000 jobs.
Using these employment figures, KPMG was able to estimate that El Corte Ingles supported more than 70,000 companies in the financial year.
The report also found that the sectors that benefitted the most from the retailer’s activity were the textile industry, furniture and other manufactured products, and the fishing industry and its derivatives.
In fact, clothing and footwear made up 16.7% of the total value of textile goods produced in Spain, while the estimated economic impact of the retailer on the domestic furniture sector stood at 6.2%.
The results reveal the importance of El Corte Ingles for the Spanish economy, as the wages it pays its employees boost consumption and fuel the creation or more jobs in the country. Those employed by the company and suppliers or directly in the supply chain spend annually an estimated €2 billion from their wages in consumer products, said KPMG.
El Corte Inglés ended its last fiscal year (from March 2015 to February 2016) with a 34% increase in net profit to €158 million, driven by sales growth, a better economic context and a cost cutting programme.
The Spanish giant has had two consecutive years of growth after ending its previous financial year with a 4.3% increase in sales.
Copyright © 2022 Europa Press. Está expresamente prohibida la redistribución y la redifusión de todo o parte de los contenidos de esta web sin su previo y expreso consentimiento.