What: El Corte Inglés has launched a new business division leasing store space to service providers like dentists and hairdressers, contributing 4% of EBITDA and 6% of net income.

Why it is important: The leasing division’s rapid growth highlights the strategic value of asset optimisation and diversification for department stores seeking new revenue streams.

El Corte Inglés is advancing its diversification strategy by launching a business division dedicated to leasing store space to external service providers such as dentists, hairdressers, opticians, and car maintenance operators. This initiative, structured through real estate lease agreements, already contributes 4% of the group’s EBITDA and 6% of net income, reflecting its growing financial significance. By optimising the use of its extensive real estate portfolio, El Corte Inglés is able to increase in-store traffic, expand its value proposition, and generate new revenue streams beyond traditional retail. The success of this division is evident in the company’s latest results, which show a net profit of €512 million and an 11.9% increase in EBITDA, alongside a progressive reduction in debt. The move is part of a broader strategic plan that includes a €3 billion investment through 2030, focused on store modernisation and financial resilience. This approach demonstrates how department stores can leverage asset optimisation and diversification to reinforce their financial structure and adapt to evolving market dynamics.

IADS Notes: El Corte Inglés’s launch of a new business division focused on leasing commercial spaces for services such as dentists and hairdressers marks a significant step in the retailer’s ongoing diversification and real estate optimisation strategy. This initiative, which already contributes 4% of EBITDA and 6% of net income, is part of a broader transformation that leverages the group’s €15.7 billion real estate portfolio to drive new revenue streams and increase in-store traffic (Modaes, July 2025). The company’s “Space Marketing” segment, which includes real estate leasing and third-party commercial relationships, generated €83 million in revenue last year, reflecting an 11.5% year-on-year increase and validating the strategy of monetising underutilised space (Modaes, July 2025). These efforts are closely aligned with El Corte Inglés’s €3 billion investment plan through 2030, which prioritises store modernisation, business expansion, and financial resilience (Modaes, July 2025; Economia Digital, June 2025). The success of the leasing division demonstrates how department stores can expand their value proposition beyond traditional retail, optimise asset utilisation, and reinforce their financial structure within a long-term strategic vision.

Space rental for dentists and hairdressers is now available at El Corte Inglés stores