Luis Montoto: Álvaro Moreno according to Dimas

“I usually walk through some shopping centers in the north of Madrid, and Álvaro Moreno’s red bags are the ones I see the most on these shopping dates.” The statement is from Dimas Gimeno, former president of El Corte Inglés and “influencer” in the food sector. … retail. On his LinkedIn account – followed by hundreds of professionals in the fashion sector – he decided to focus on the Osuna company, and under his magnifying glass the keys to success appeared. “It offers a classic product at an unbeatable price, its proposition adapts perfectly to the Spanish public (classic, traditional and price sensitive), and with “only” eighty stores in Spain its growth potential is still very high.” The result is reflected in the figures: its revenues are around 140 million euros; Their net profit exceeds 19 million and they have no long-term debt. Grow profitably and quietly. “It clearly dominates the south, it is sweeping Madrid and hopes to do so in Barcelona, ​​traditionally difficult territory in the menswear sector.” It was Gimeno who placed Álvaro Moreno’s corners in El Corte Inglés centers across Spain, which represented an exponential leap for Osuna’s company.

The article by “influencer” Dimas Gimeno sparked widespread debate among his followers, many of whom are also industry experts, and highlighted more of the brand’s strengths and weaknesses. It has forged a highly optimized store network, there is absolute cost control and a very intense commitment from Álvaro Moreno himself in strategic decisions. Weaknesses are, however, detected. For example: when price constitutes the great competitive advantage, a competitor can always emerge with even lower prices and “a cooler image” (and Álvaro Moreno’s success is necessarily based on massive sales, which allow a very high turnover of clothing). The Sevillian brand’s clothing style has proven itself in southern and central Spain, but it has yet to be proven that it can be exported to other markets with more sophisticated styles, such as France or Italy.

Many of those who evaluate the evolution of Álvaro Moreno compare it to the proposal of Scalpers or Silbon (which confirms the rise of Andalusian brands). Regardless, the questions that linger behind this discussion are: Where is the limit of the Osuna business? Can it continue to multiply its numbers (in 2017, its sales were 20 million; today, they have multiplied by more than ten)? Can your model be extended to other countries in Europe and America? The reality is that Madrid is already inundated with red bags and, at 50, Moreno is now in full commercial maturity. From there, and as he himself says on every poster announcing the opening of a new store, “may it be the will of God”.

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