El Corte Inglés once again takes a turn in its main executive position. The department store company has confirmed the dismissal of its current CEO, Gastón Bottazzini, appointed to the position just over a year ago at the proposal of president Marta Álvarez. The company speaks of a “remodeling of the first executive line”, which includes the appointment of Santiago Bau as general director with decision in all the group’s businesses. Until now, Bau served as corporate general director, with influence in businesses outside of retail activity.
This remodeling includes the departure of Bottazzini after “a period of deep reflection” between the parties, according to El Corte Inglés in a statement. As it progressed today The Confidential, the The departure would occur due to differences of opinion that arose between the Argentine executive and the president of the group, Marta Álvarez, and other shareholders. It so happens that Bottazzini came to El Corte Inglés as an advisor to the president herself, who later trusted him to prepare the company’s new strategic plan until 2030.
This began on March 1, with the beginning of the new fiscal year, so Bottazzini has barely lasted eight months since its beginning. The company says it appreciates “his professionalism, as well as his work and dedication” during his period in the company.
El Corte Inglés has also appointed Rafael Díaz Yeregui, until now deputy secretary of the board, as general secretary of the company, with the rank of general director and assuming the directorates of legal advice, sustainability and human resources.
Both Bau and Díaz Yeregui will report to the monitoring committee of the board of directors, chaired by Marta Álvarez herself, and completed as members by her sister, Cristina Álvarez, and José Ramón de Hoces, although she does not have management functions. It was created in April, after abolishing the executive committee to, precisely, reinforce Bottazzini’s decision-making power in the management of the group. Said monitoring commission will also not “replace or replicate the main responsibilities and delegations of the other commissions, the board of directors and the executives and directors of the company”, as established by the company.
Bottazzini’s is not the only departure, since the board of directors of El Corte Inglés has also appointed Álvaro Parrón as the new director of the group’s real estate area, replacing Javier Catena, who in recent weeks has left the company after six years in it.
Some changes that come just a few weeks before a key moment of the year begins, such as the Christmas campaign, which brings together close to 30% of the company’s annual sales along with the winter sales.
New twist
It is not the first time that El Corte Inglés has taken a turn of this type. In March 2022, it dispensed with its then top executive, Víctor del Pozo, despite having a contract until 2027 and, as on this occasion, as soon as it began to execute the strategic plan with a view, then, to the year 2026.
His position was covered by a delegated executive committee, chaired by Marta Álvarez, and made up of four more executives: José Ramón de Hoces, Javier Rodríguez-Arias, and the signings of Santiago Bau and José María Folache, the first in charge of corporate businesses, and the second, of retail. Folache was also dismissed from his duties almost a year ago, and with the appointment of Bottazzini, the delegated executive committee was also abolished.
The changes announced this Wednesday leave Santiago Bau as the executive with the greatest weight at El Corte Inglés, although without the rank of CEO. Bau has a financial profile, since the bulk of his career was spent at Goldman Sachs.
The outgoing CEO, Gastón Bottazzini, was the first executive of the Chilean department store and distribution company Falabella, where he also held various positions for 15 years. Born in Buenos Aires in 1969, he was a partner at McKinsey & Company between 1996 and 2008, focusing mainly on the financial and consumer goods sectors in Latin America, the United States and Spain.
Strategic plan
The last shareholders meeting of El Corte Inglés approved the new strategic plan until 2030, which includes investments of 3,000 million euros for the renewal and expansion of its store network, with the aim of increasing sales and profitability. That same meeting endorsed the renewal of Marta Álvarez as president for a period of five more years. It is unknown whether this strategic plan will continue under the new management.
In the last financial year, the distribution company generated a net profit of 512 million euros, 6.7% more than the profit of the previous accounting year, with a turnover that appears in its income statement is 14,786 million, 2.3% more. EBITDA rose 12% to 1,209 million, the best figure in this section since 2007. Net debt stands at 1,796 million, 13% less and the lowest amount in the last 17 years.
