Image from SSI's Instagram account
MANILA, Philippines – SSI Group Incorporated, the country’ largest specialty store retailer owned by the Tantoco family, is targeting net income and sales to grow by 19% to 22% this year on the back of rising consumer spending and a growing middle class.
“2015 will be a good year for the Filipino consumers and the company will benefit from increasing consumer spending,” SSI president Anthony T. Huang said during the company’s annual stockholders meeting Monday, June 15.
Huang said the group’s luxury brands continue to be stable due to favorable economic conditions while the company’s fast fashion and beauty brands have been growing significantly due to the growing aspirational and middle-income market.
“A big chunk of sales is generated by middle-income segment. It really allows us to go into shopping mall locations that cater to broader market,” Huang said.
In 2014, SSI Group posted a 63% growth in net income to P998 million ($22.08 million) from P613.7 million ($13.57 million) recorded in 2013. Its revenues stood at P15.2 billion ($336.23 million), a 19% increase over the previous year.
Increased capital spending
Also for 2015, SSI Group increased its planned capital spending to over P2 billion ($44.25 million) from initial target of P1.5 billion ($33.19 million) as the company plans to build 21,000 square meters (sq. m.) of retail footprint.
For 2016, it eyes to spend another P1.7 billion ($37.62 million) for the development of 16,000 sq. m. of additional retail space.
As of end-March 2015, SSI Group’s retail footprint stood at 138,000 sq. m.
Huang said the company will continue to expand its retail portfolio by bringing in new brands.
In the first quarter of 2015, SSI Group added 7 new brands, namely Max & Co; Charming Charlie; Radley Amazonas; Jelly Bunny; Kurt Geiger; and Lipault.
SSI was established in 1987 to handle the Rustan’s Group’s specialty retail operations. Starting with Lacoste, then Salvatore Ferragamo, and Marks and Spencer, SSI quickened its growth in 1995 and added international brands such as Ralph Lauren, DKNY, Kenneth Cole, Burberry, Tod’s, Bottega Veneta, YSL, Hugo Boss, Banana Republic, Massimo Dutti, Tory Burch, and Old Navy.
SSI, which includes Stores Specialists Incorporated, retails 103 international brands including Aeropostale, Beauty Bar, Bershka, Gap, Gucci, Hermès, Kate Spade, Michael Kors, Nine West, Payless Shoe Source, Pottery Barn, Prada, Samsonite, Stradivarius, TWG, Zara, among others.
Huang said the company is also studying plans to venture in other areas like Cebu and Iloilo, citing the increasing developments in these key cities.
For its convenience store business, FamilyMart is venturing in Cebu with the opening of 5 stores in July.
At present there are 103 FamilyMart stores.
For 2015, Huang targets to have 150 FamilyMart outlets of which 40-45 are franchised. – Rappler.com
$1 = P45.19