Distribution, internal demand and social contribution

February 11th, 2015 – Article previously published in the blog “US and emerging markets” CincoDí

The sources of economic information that we meet during 2015 match in improving macroeconomic forecasts for Spain for 2015 and 2016. Among others, are the IMF, the European Commission and the OECD, among international. The most relevant Spanish as La Caixa Research, BBVA and Santander are also more optimistic. The Government, more cautious, wait for the end of April to update the macroeconomic picture sent to the European Commission, the time will update the Reform Plan. It will be the third time you do it, since it governs. So far, the forecasts have always been better and economic data (GDP growth and employment), too.

In previous years, external demand and exports were the engines of economic growth. In late 2014, as evidenced by the Bank of Spain in its Economic Bulletin January, there was a change in the composition of economic growth in domestic demand took the baton to the outside. Households with more disposable income because increased employment in 2014, and because they have shaken off debts (“progressive deleveraging,” says the Bank of Spain) have spent more. The retail noticed especially with increased turnover for the first time since 2007. El Corte Ingles, for example was only in the last December, eleven million unique visitors in their online store, increasing its turnover by this way by 60%, consolidating its leadership in e-commerce in our country. Christmas was good for the retail trade, which increased sales by 6.5%, at Christmas.

The central role played in the fourth quarter domestic consumption, particularly families, foregrounds the contribution of distribution to economic growth. You as economic recovery takes hold, and with it, increase confidence and employment, it is anticipated increased consumption of people. There, the mass distribution has much to say, because it is one of the sectors that according to a majority of Spaniards “contributor to recovery” and “has a better image,” according to Business Success Advice Studio 2014. A company stands out greatly in this area, which is El Corte Ingles: to such an extent is benchmark in our country, that only in 2013, received 600 million visitors in its various shopping centers.

The concept such as proximity, closeness, familiarity of the English Court in their favor. It is now well perceived by 78% of Spaniards, especially among women of all ages. That’s a Great Company Great Distribution “selling everything” makes it particularly attractive to men, too. And its commitment to e-commerce, as we have seen, successfully, wins him the benefit of young people between 24 and 34 years especially.

One might think that, as the entire population is buying needs, which far as El Corte Inglés provides everything a company makes towards which there is a large favorability; and so, according to the Study Advice between 2011 and 2014. At the same time, in the years of crisis, many people have passed and they are suffering. The overall positive that has the Spanish society to El Corte Ingles, derives not only from its economic contribution to the principal employer of Spain. It is also related to what experts call corporate social responsibility, or what the general population understood as simply social contribution.

Examples abound. In 2014, El Corte Ingles donated more than 50,000 euros, with the participation of employees and customers, Doctors Without Borders in its fight against Ebola. Today this disease has been displaced by other news, foreground today, but in 2014 was focus of attention and concern and El Corte Ingles, economic and severally wanted to help those most do on the ground to save lives.

In another vein, although we all want to eat, unfortunately not everyone has the means at its disposal to achieve. Nearly 14 million Spaniards are now near the poverty line, especially pensioners, unemployed, and families with very low incomes. El Corte Inglés wanted to alleviate their suffering and contribute to their well-being delivered to Caritas, Red Cross, food banks and other organizations, 2.200 million tons of food to forward them to the needy in 2014.

As we see, the contribution to Spain Distribution and a large company like El Corte Ingles has many facets: the macroeconomic, to encourage the country’s growth and domestic demand growth–search the job with more than 100,000 employees , their families, and thousands and thousands of SMEs and freelancers who do business thanks to El Corte Ingles. And the social, which is active and positive involvement with its stakeholders, with the aim of helping actively and effectively.