The Corte Ingés, the second largest department store in the world and first in Europe, is in a "vulnerable" to the Spanish economic situation, which is expected to fall around 4% this year, according to the British weekly ' The Economist '.

"The company operates almost exclusively in Spain and this has left it particularly vulnerable to the harsh condition of the Spanish economy," says the magazine, which marks the first time in the history of the network sales fell 3.5% in the last financial year ended last February.

The newspaper said that the group, which does not usually compete on price, has had to resort to heavy discounting and "generous" funding policies purchases without interest to attract customers, in a context where most of the Spanish want to save all costs, which has meant that its net profit fell by nearly half.

He also warns that the fact that the company, presided Isidoro Alvarez is the largest provider of consumer credit, ahead of Santander, may pose a risk if a growth in arrears due to unemployment.

The magazine said the firm has diversified its business, but "with the exception" of the travel agency and hypermarkets, "the rest" has not had much success, "citing as examples of his fashion chain and supermarkets Sfera lost money. Quoting analysts, also points to the reduction in margins will force the group to cut its product offering.

In any case, 'The Economist' believes that Alvarez wants to maintain its current business model, which has reported great success. It also notes that the IPO would be a "natural step" for a family company of its size, although the English court does not need resources, its debt is low and has little desire to expand outside Spain and Portugal.

  September 25, 2009 EUROPA PRESS