Department stores in Spain: why El Corte Ingle´s succeeded where Galerías Preciados failed

Explores and compares the strategic development of Spain’s two most important retail organisations, El Corte Inglés and Galerías Preciados. Both department stores were established in the 1930s, but while the former has gone from strength to strength, Galerías Preciados changed hands several times before going into receivership in 1994, when it was bought up by El Corte Inglés. A comparative case study approach which focuses on outlet growth, diversification, financial control and continuity is used to identify the factors which appear to account for the contrasting fates of the organisations. Concludes that careful planning, vertical integration and continuity of ownership and positioning within the context of the macro‐environment contributed to El Corte Inglés’ success and longevity.