El Corte Inglés activates its 'Gen Z' plan in Madrid’s Castellana
What: El Corte Inglés expands its ‘New’ platform with a temporary concept space in Madrid, combining fashion, beauty, technology, and cultural programming to strengthen its connection with young consumers.
Why it is important: This expansion of the ‘New’ platform illustrates the retail industry's transformation from traditional department store models to experience-driven destinations, combining carefully curated brands with cultural programming to attract and retain younger consumers.
El Corte Inglés is launching an innovative pop-up store adjacent to its Castellana location in Madrid, marking a significant evolution in its strategy to connect with Generation Z. The temporary space, operating from May 22 to June 8, brings together more than 80 brands across fashion, beauty, technology, culture, and food sectors under the New concept banner. This initiative features prominent names such as Adidas, Apple, Bimba y Lola, Lacoste, MAC Cosmetics, and Cold Culture, complemented by an engaging programme of book signings, customisation workshops, and concerts.
The project builds upon the ‘New’ platform, which El Corte Inglés introduced in October 2023, developing it into a dedicated channel for reaching Generation Z. The company has further strengthened its youth appeal by enlisting popular artists Tini and Quevedo for its spring-summer campaign. This strategic initiative comes during a period of strong performance for El Corte Inglés, with the group reporting a net profit of €203 million in the first half of its 2024-2025 fiscal year, an 11% increase year-on-year, alongside revenue growth of 2.3% to €8.041 billion.
IADS Notes: El Corte Inglés's New pop-up store in Castellana represents the culmination of a carefully orchestrated Gen Z strategy that began with their "Welcome to the new era" campaign in October 2023. This initiative aligns with the company's broader transformation, which has included a €428 million investment in upgrading 25 locations and experimenting with innovative retail formats like the "New Motel" experience at Mad Cool Festival. The timing is particularly strategic, as RetailNext's research indicates that Gen Z consumers expect tech-driven, frictionless experiences, with 35% abandoning traditional retail environments that don't meet their expectations. The pop-up's success builds on El Corte Inglés's recent financial strength, with the company reporting a 38.4% increase in recurring net profit while reducing debt significantly. This financial performance has enabled continued investment in youth-focused initiatives, including exclusive cultural experiences and art installations. The selection of over 80 brands for the pop-up reflects the broader trend of department stores seeking differentiation through unique brand partnerships, while the integration of cultural programming responds to Gen Z's demonstrated preference for experiential retail.
