Robinsons allots P6B in 2015 to focus on smaller-format stores
MANILA, Philippines – Robinsons Retail Holdings Incorporated (RRHI), the retail arm of the Gokongwei group, is spending P6 billion ($133.8 million) in capital expenditures for 2015, up from P4 billion ($89 million) in 2014 as the company plans to focus on the roll-out of smaller-format stores.
The company will be opening 270 to 300 stores this year, mostly under its convenience store chain business Mini-Stop and mini-supermarkets, Robina Gokongwei-Pe, RRHI president and chief operating officer, said at the sidelines of an event marking the partnership of RRHI and Chevron Philippines Incorporated.
Gokongwei-Pe said on Thursday, March 26, that the company plans to open 100 Mini-Stop stores this year and 15 to 20 Robinsons supermarkets.
This comes as RRHI ventures in smaller-format stores to reach a wider market.
Because the retail landscape in Metro Manila remains competitive, the company is venturing outside Metro Manila where there is still a lot of room for growth, Gokongwei-Pe said.
The company faces stiff competition in the rapidly expanding convenience store market.
RRHI is also preparing to launch UK-based Costa Coffee in the Philippine market this year.
“We are going to open by the third quarter of the year,” Gokongwei-Pe said.
In September 2015, RRHI signed an international distribution agreement for the supply of Costa Coffee beans and operations of Costa Coffee shops in the Philippines.
Gokongwei-Pe said the company has already identified 3 potential locations for Costa Coffee.
Under the agreement, RRHI will put up 70 Costa Coffee stores over the next 5 years.
RRHI is the country’s second largest multi-format retailer in the country.
In 2014, RRHI reported a 29.5% hike in net income to P3.56 billon ($79.4 million) from P2.75 billion ($61.3 million) in 2013, driven by higher income from operations and interest income.
RRHI’s net sales for 2014 also jumped by 19.5% to P80 billion ($1.78 billion) versus P67.25 billion ($1.5 billion) in 2013.
As of end 2014, the group operates 1,327 stores. – Rappler.com
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