El Corte Inglés closes over 60 travel agencies
What: As part of its broader modernization strategy, El Corte Inglés is closing more than 60 travel retail locations, prioritizing digital channels in response to changing consumer preferences and the increasing dominance of online travel bookings.
Why it is important: The decision demonstrates how major retailers are rethinking their physical footprint in specialized services, balancing digital transformation with operational efficiency in an increasingly online-focused market. El Corte Inglés's decision to close over 60 travel agency locations marks a significant pivot in its retail strategy.
The closures, primarily affecting outlets in shopping centers and strategic locations, reflect the growing consumer preference for digital platforms when booking travel services. This transformation aligns with the company's broader modernization efforts, following earlier closures of various retail formats including Méndez Álvaro, Arroyosur, La Vaguada, and Parquesur centers, as well as Hipercor hypermarkets and Supercor supermarkets. The company plans to maintain its presence in the travel sector through enhanced digital platforms and online booking services, while ensuring continued personalized support through digital channels. This strategic shift includes plans for staff reallocation and training programs to facilitate the transition to new digital service roles, demonstrating the company's commitment to adapting its workforce alongside its technological evolution.
IADS Notes: El Corte Inglés's transformation throughout 2024-2025 represents a comprehensive approach to retail modernization. February 2025 marked a significant milestone with America Retail reporting a EUR 428 million investment in digital expansion and store renovations, while March 2025 saw El Confidencial detail the creation of a dedicated Transformation Office under CEO Gastón Bottazzini. The company's strategic evolution gained momentum through partnerships, notably with McKinsey in October 2024 to develop a new strategic plan. This transformation has shown tangible results, with June 2025's Press Release reporting FY2024-25 like-for-like growth of 4.3% and EBITDA reaching EUR 1.2 billion. The restructuring of various business units, including travel retail, reflects a broader strategy of operational optimization while maintaining customer service excellence. This is evidenced by November 2024's Contact Center Hub coverage of new exclusive customer experiences and May 2025's Modaes report on Gen Z initiatives. The closure of physical travel agencies represents the latest phase in this transformation, aligning with the company's focus on digital innovation while preserving its core strength in personalized customer service.
