Spain's El Corte Ingles chain to expand

MADRID, Aug 27 (Reuters) - Europe's largest department store, El Corte Ingles, said on Monday it would open four new stores in Spain and press on with expansion plans in Portugal and Italy.

Spain's biggest retailer also said 2006 sales rose 7.8 percent to 17.09 billion euros ($23.2 billion), while net profit was up 9.1 percent to 712.4 million euros.

The expansion plan pushed up net debt 58 percent to 1.76 billion euros at the privately owned group.

The government expects the Spanish economy to grow 3.8 percent this year, although some analysts fear harder times ahead if the construction sector slides and heavily indebted households cut back spending.

Based on sales, El Corte Ingles is the world's 30th largest retailer, according to research by retail consultancy Planet Retail.

The group is appealing a court decision that it must pay one of its shareholders market value for his stock rather than the lower price put on the shares by the company.

((Reporting by Elisabeth O'Leary; editing by Jane Baird; Reuters Messaging: elizabeth.oleary.reuters.com@reuters.net; +34 91 585 2160;madrid.newsroom@reuters.com))

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