Robinsons Retail buys stake in De Oro Pacific
MANILA, Philippines – Robinsons Retail Holdings Incorporated has acquired a majority stake in De Oro Pacific Home Plus Depot, a big box builders hardware depot with 3-store chain in Northern Mindanao.
The Gokongwei-led firm told the Philippine Stock Exchange that its subsidiary RHI Builders and Contractors Depot Corporation's acquisition will add to its big box hardware portfolio.
De Oro Pacific Home Plus Depot started operating in 1993. The stores are located in Cagayan de Oro and Iligan City with combined gross floor area of approximately 9,400 square meters.
The company also operates a 3,000-square-meter warehouse in Cagayan do Oro that supports the 3 De Oro Pacific Home Plus Depot stores.
"The purchase of De Oro Pacific Home Plus Depot stores demonstrates the bullish stance of Robinsons Retail group in the do-it-yourself (DIY) business which is currently rising to the sustained growth of the construction sector driven by the huge backlog in residential building," the company said.
In June 2014, Robinsons Retail acquired RHI Builders and Contractors Depot, owner and operator of 17-big box hardware chain AM Builders Home Depot based in the Visayas.
All stores have been renamed Robinsons Builders.
As of end June 2016, Robinsons Retail operates 152 mall-based DIY hardware stores, including 132 Handyman Do It Best stores, 19 True Value stores, and two True Home stores.
Robinsons Retail is one of the leading multi-format retail groups in the Philippines and enjoys market leading positions across all its business segments.
It currently operates 10 retail formats under 6 business segments, including department stores, supermarkets, home improvement stores, convenience stores, drug stores, and specialty stores.
For 2016, the group earlier said it plans to spend P5 billion in capital expenditures, up from P3.14 billion actual spending in 2015, as it plans to roll out more stores this year.
The retail firm is also targeting same-store-sales growth of 2% to 3% and gross profit margin increase of between 10 to 20 basis points.
As of end 2015, Robinsons Retail operates 1,506 stores with total gross floor area of 974,000 square meters. – Rappler.com