Robinsons Retail allots P7B for 2014 store expansion
MANILA, Philippines – Robinson Retail Holdings Inc., the retail holding arm of the Gokongwei group, is spending P7 billion ($159.43 million) for store expansion this year, significantly higher than last year’s P2.8 billion ($63.77 million).
For this year, Robinsons Retail is aiming to end 2014 with 1,400 stores, from 1,064 in 2013.
The company is also on the lookout for possible acquisition and expansion into other retail segments and it plans to pursue franchising deals with new global brands, Robinson Retail President and Chief Operating Officer Robina Gokongwei-Pe said during the company’s annual stockholders’ meeting.
“2014 will be an exciting year for Robinsons Retail and greater milestones are yet to happen for us. The Philippine retail market is still highly under penetrated with significant potential for growth and further upside that will benefit our expansion plans,” Gokongwei-Pe said.
Robinsons Retail is banking on the rosy macroeconomic environment, characterized by “rising middle income, shift from traditional to modern retail, and increasing disposable income,” she added.
In the first quarter, Robinsons Retail posted a core net income of P530 million ($12.07 million), up 15.2% from the same period a year ago.
Consolidated net sales grew 16.1% in the first 3 months to P15 billion ($341.65 million), driven primarily by sales from newly built and acquired stores.
Robinsons Retail operates 10 retail formats: supermarket, department store, Do It Yourself stores, convenience stores, drugstores, and specialty stores carrying international fashion and cosmetic brands. As of end-March, the company had a total of 1,145 stores in the country. – Rappler.com