El Corte Inglès new strategic plan focuses on performance and cost reduction
What: El Corte Inglés introduces new management incentive plan aligned with 2025-2030 strategic objectives, focusing on operational efficiency and digital transformation.
Why it is important: This development reflects the retail industry's shift toward performance-based compensation tied to specific transformation objectives.
El Corte Inglés has approved a new management incentive program as a key component of its ambitious 2025-2030 Strategic Plan, developed in collaboration with McKinsey. The initiative, to be presented at the July 24th shareholders' meeting, aims to align executive interests with the company's long-term business objectives. The plan focuses on enhancing profitability, optimising cost structures, and accelerating digital transformation across the group's network of 72 department stores in Spain and two in Portugal. Key performance metrics include sustained operational profitability improvement, structural cost reduction, new business line development, and advancement in online commerce and omnichannel capabilities. The incentive structure is designed to reward executives who demonstrate measurable contributions to these strategic goals, positioning El Corte Inglés for success in an increasingly competitive retail environment.
IADS Notes: El Corte Inglés' new incentive plan represents a crucial component of its broader transformation strategy. According to Modaes' October 2024 coverage , the company partnered with McKinsey to develop a comprehensive strategic plan following several years of financial adjustments. Inside Retail's February 2025 analysis revealed how the company has invested €428 million in upgrading 25 locations while expanding digital capabilities, demonstrating its commitment to balancing traditional retail strengths with innovation. Press Release's June 2025 report showed the strategy's early success, with FY2024-25 like-for-like growth of 4.3% and EBITDA reaching €1.2 billion. El Confidencial's March 2025 coverage highlighted how the creation of a new Transformation Office under CEO Gastón Bottazzini, along with expanded responsibilities for key executives, supports the implementation of these strategic initiatives. The new incentive plan's focus on operational efficiency, cost reduction, and digital transformation aligns with these broader strategic objectives, ensuring management's interests are directly tied to the company's long-term success.