retail

The Catalan economy grew by 0.4% in the first quarter of 2014, which means that GDP has been increasing for the last 4 consecutive quarters, leaving recession far behind, according to an early estimate published on Monday by Catalonia’s Statistics Institute (Idescat) and the Catalan Ministry of the Economy and Knowledge. Furthermore, between March 2013 and March 2014, Catalonia’s economy grew by 0.8%. In the second quarter of 2013 it registered a quarterly growth of 0.1%; in the third it also posted a 0.1% quarterly growth; between October and December, it increased by 0,2%; and now, between January and March, it grew by 0.4%. The services sector has been the main engine behind this positive trend; in the last 12 months it grew by 1.4%.

The Barcelona-based fashion enterprise announced that the French investment group Eurazeo will join the Catalan company after a €285 million injection. For this operation, Desigual will issue a share offer that will increase its capital by 10%, which will be entirely covered by Eurazeo. In 2013 Desigual posted a net profit of €129 million, which represents a 71% growth on the 2012 figures. The Catalan retail company's turnover reached €828 million, 18% more than the previous year, according to the Director General of Desigual, Manel Jadraque. On Tuesday, when presenting the company's results for 2013, Jadraque disclosed an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of €242 million, representing 29% of the sales figures.

E-commerce giant Amazon is studying the possibility of opening its first logistics centre in Catalonia, as advanced by some newspapers on Thursday. The new facilities could be located in El Prat de Llobregat, next to Barcelona's main airport. The centre could dispose of 210,000 m2 of work space and 151,000 m2 of land, making it larger than the Amazon centre in Madrid, according to ‘La Vanguardia’ newspaper. Works could start soon for the logistics centre to become operational by late 2015, with 3,000 employees expected to be hired. The Catalan Minister for Business and Employment, Felip Puig, regretted this early announcement as the company has not reached a final decision yet. Puig regretted the “reckless” move by the Spanish Secretary for Trade for disclosing the news and added that Catalan authorities continued to “work discreetly” to attract investments from foreign multinationals.

For the first time since the beginning of the crisis, sales have already shown a “slight recovery” during Christmas, highlighted the President of Catalonia’s Confederation of Commerce (CCC), Miguel Ángel Fraile, who is “very optimistic” about the upcoming winter sales. Indeed, during the months of November and December, retail consumption have registered an increase of 2% and 3% compared to the previous year. It is expected that Catalans will spend a total of about €800 million during the winter sales, between 3% and 5% more than last year. These estimates by CCC also indicate that, on average, each citizen will spend €90 for the purchase of clothing items.

The Italian investment group has announced it will build and manage 3,000 of the 6,000 hotel rooms of the ‘BCN World’ mega resort, the competitor to Madrid’s Eurovegas that is being developed by Veremonte in Salou (Costa Daurada). The $6 billion entertainment resort will be located next to the beach and the PortAventura theme park, which is owned by Investindustrial. After a year of talks, the Italian company has finally decided to join the mega resort project, which will have casinos, hotels, convention centres, luxury shops, restaurants, golf courses and a beach club. The CEO of ‘BCN World’, Xavier Adserà, confirmed that the resort will begin building in the first half of 2014, employing 17,000 people. The hotel group Melià, shopping-mall company Value Retail and casino group Melco Crown Entertainment will build the first phase.

On Thursday, the Catalan Government published the new legal project for the area where ‘BCN World’ will be built, in order to modify the existing town-planning project and other rules. In addition, it will also modify the current taxes on gambling, dropping them from a maximum rate of 55% to 10%. The modification of such taxes was one of the changes the Catalan Government had promised international investors in order to develop the mega resort, which will see the construction of 6 casinos and hotels the size of those in Las Vegas. In addition, the resort will have golf courses, a beach club, a marina, a smart residential city area, shopping centres, theatres, conference centres and other attractions. Two weeks ago, the first three international investors participating in the project were announced. Plans are to start construction of the first casino in September.

The new facilities are the second longest building in the Catalan capital, as it is 186 metres long. Desigual’s new headquarters are located on prime real estate, just in front of Barceloneta beach and next to the W Hotel. They will initially host 840 employees but at a later stage they will host up to 1,500 people. The building is split into 6 storeys and occupies 24,400 square metres. According to Desigual’s President, Thomas Meyer, the building is inspired by the retail company’s values such as “positivity, respect, compromise and constant improvement”. The President of the Catalan Government, Artur Mas, attended the unveiling event and praised Desigual for combining the “informality” of its clothing style with the “seriousness” of a company with shops in more than 100 countries.

The investment is to be added to the €360 million plan to build a new logistic park for the Catalan multinational within the next 10 years. Construction work on the logistic park started in February in an area near Mango’s world headquarters, which are located in Greater Barcelona’s town of Palau-solità i Plegamans. The €27 million investment announced on Wednesday is for a new industrial building that will begin construction this summer next to the company’s main offices. It will host the all the staff in charge of Mango’s new lines for teenagers and mature women – respectively called ‘Rebels’ and ‘Violeta’ – as well as the company’s brand for men ‘H.E. by Mango’. The new facilities will add 17,000 square metres to Mango’s headquarters.

The new retail outlet mall will create 1,000 new jobs. The Spanish company has bought a plot of land of 25,000 square metres from the Catalan Government to build the macro shopping centre in Viladecans, near Barcelona El Prat Airport. The mall will have top brands at low prices and it is expected to attract not only locals but also many tourists. The land had been reserved since 2006 for the creation of a business hub for companies related to the aero-spatial and mobility sectors, but the project was finally aborted due to the economic crisis. Greater Barcelona already has a similar mall 30 km north of the Catalan capital, while the new macro outlet will be less than 15 km south.

The Catalan clothing company Mango had a €1.69 billion turnover last year, which is a 20% increase on 2011 data. 84% of the company’s revenue comes from outside Spain. During 2012, the Catalonia-based company opened 197 shops or retail corners worldwide, 180 of which were outside Spain. By the end of the year, Mango had 2,600 shops in 107 countries, with more than 12,000 employees all over the world. In 2013, the Catalan company will enter four new markets: Angola, Equatorial Guinea, Mongolia and Zimbabwe. In addition, it has planned to invest €265 million in opening new selling points, reforming shops and improving its logistics and information systems.

The fashion label Desigual based in Barcelona has obtained a €200 million line of credit from different banks. This financial support will be used to finance international expansion as well as plans for a new logistical centre in Vilamoura (Barcelona). Leading this investment is the Catalan bank CaixaBank, mostly owned by La Caixa. Under the slogan “Desigual – It’s not the same” the label wants to focus on continual improvements, innovation, engagement, tolerance, positivism and fun. Within this slogan now Desigual is trying to attain a more international status, enlarging its current team of 2,900 people from 72 different nationalities.

150 million bottles of Catalan Cava were exported last year. It is a historic record for Cava producers with Germany and the United Kingdom being the main importers. The Catalan sparkling wine has the perception of being inexpensive in these countries, which has worked to the Cava producers’ advantage at a time of economic crisis as demand for alternatives increases. Wine connoisseurs put high quality Cava on the same level as Champagne, yet many consumers still associate the Catalan drink with a cheap product. High quality Cava is starting to be discovered and has strong potential to grow in these markets.

The Director General of the Catalan fashion retailer, Enric Casi, had already warned that the MANGO's profits in 2011 would be lower than usual due to its extensive investments and expansions abroad. In 2012, the company expects a profit of €200 million due to the investments and has already seen positive results for the first months of this year. The successful multinational was founded in Barcelona in 1984 and has over 2,400 outlets in 107 countries and over 11,000 employees.

The bus, which will accompany the first team when Barça play away from the Camp Nou, is FC Barcelona's new mobile store for official Barça products. The FCBotiga Mobile Bus was unveiled at the Catalan club sports city.

Punto Blanco has its own network to distribute and sell in 37 countries. The Catalan socks and underwear manufacturer has 16 shops, 15 of them in Spain and another in Portugal. Exports might represent 15% of the companies turnover.