Fewer square meters and more profitability: this is how large Spanish retailers are reinventing themselves.

Several of the largest retailers (in food, textiles, etc.) have had to face a similar challenge: how to make their sales space more profitable in the face of the rise of the online channel and the change in consumer habits towards an omnichannel customer, whose purchasing process seamlessly combines the digital with the physical: it begins in the app and can end in a store. Giants such as Inditex (especially Zara), Mercadona , or El Corte Inglés , to a greater or lesser extent, has been making improvements to its retail network, including some specific closures, and is investing in local formats. Along these lines, the latest move has been made by El Corte Inglés, whose president , Marta Álvarez, announced this Thursday during the group's shareholders' meeting an investment of more than 3 billion euros as part of its 2025-2030 strategic plan to, among other things, remodel its stores.

For its part, Mercadona closed the 2024 financial year with 1,674 supermarkets in Spain and Portugal after opening 31 new establishments and closing 49 stores "that did not meet the company's requirements and standards to guarantee the best shopping experience for its customers," according to its annual report. In Spain alone, its retail network grew from 1,632 stores in 2023 to closing this past year with 1,614 supermarkets , after closing 18 locations.

In parallel, the company reports that it has continued to adapt more supermarkets to the so-called "Efficient Store Model" or " Store 8." By the end of last year, a total of 1,431 stores across both countries had already migrated to this new system, which it defines as more sustainable and with an assortment distribution "optimized and more comfortable for both customers and employees." In this regard, the group chaired by Juan Roig has invested a staggering €419 million during 2024: €181 million for new openings and €104 million for renovations.

"Omnichannel is the new reality"

"Omnichannel is the new reality today," notes ESIC & Marketing School professor and international consultant Beatriz Irún. This expert explains that "consumers expect a seamless experience between digital and physical channels . They typically research products online and purchase them in-store or receive personalized in-store recommendations based on their online searches." In this regard, she asserts that companies like those mentioned above must understand these changes "and delve deeper into strategies that integrate both worlds and consider them a single market." In this regard, she mentions, among other tactics, the introduction of QR codes in stores and in-store pickup of online orders. In addition to "physical events" promoted on social media.

"Consumers expect a seamless experience between digital and physical channels. They typically research products online and purchase them in-store, or receive personalized in-store recommendations based on their online searches," Beatriz Irún (ESIC)

For Javier Cuervo, a professor at UNIE University, "stores tend to be 'flagships' that foster relationships with the brand," and he mentions that Leroy Merlin and Decathlon "are closing large malls and opening small stores in city centers." In this regard, he emphasizes that these types of stores can support the online channel "and are geared toward small purchases ; even for events, they are much more accessible." Decathlon presented its first-half results last Thursday. The sporting goods group is immersed in its own store modernization strategy , with digitalization and circularity as its main pillars. For 2025 alone, it plans an investment of more than 38 million euros for more than 70 stores.

In the case of Inditex , according to the textile giant's Annual Report, as of December 31, 2024, it had a total of 5,563 stores. This was 129 fewer than the previous year ; however, the total sales area measured in square meters had increased slightly. The main reduction was concentrated in Zara , which went from 1,811 stores to 1,759 at the end of last year, as well as in Oysho , which was left with 43 fewer locations. In its last results presentation, in March, the company assured that during the current year it would continue with the "optimization" of stores worldwide. "They talk about a model of fewer stores and more sales , with larger surfaces. In addition, they are doing a great job online: 'Buy me or see me, go to the store, then to the website, to the app,'" explains Cuervo. For this expert, we are facing total convenience and always at the same price. "This is what Inditex is focusing on," says the UNIE University professor.

"Stores tend to be flagships that foster relationships with the brand," Javier Cuervo (UNIE University)

In line with the above, it is noteworthy that the distribution group chaired by Marta Álvarez is taking out profitability of their real estate assets and reducing debt. This expert highlights the reduction in the number of department stores and the greater commitment to convenience formats such as Supercor . Beatriz Irún (ESIC) is much more skeptical about the future of some flagship stores located in emblematic locations. "There are centers in provincial capitals where even the biggest brands are disappearing from the streets considered to be golden miles," warns this consultant, who believes that the owners of these central locations may be forced in the future to accept that the cost of rent will be established through a percentage of sales. "The market today is online , and everything indicates that, through one channel or another, it will continue that way: global and online," she concludes.