RRHI sets P6B capex for 2015

GOKONGWEI-led retailer Robinsons Retail Holdings Inc. is spending about P6 billion this year to expand its store network across different formats and bring its nationwide footprint to about 1,600 stores.

RRHI president Robina Gokongwei-Pe said in a report to stockholders during the company’s annual meeting on Thursday that the group was optimistic about the future of modern retailing in the country, especially starting this year 2015 when the country was expected to enter the demographic window. This refers to the phase when bulk of the population would reach working age, thereby increasing the potential for reaping the so-called demographic dividend.

“Consumption spending will remain buoyant as we realize better employment opportunities, sustained growth in the BPO (business process outsourcing) sector and steady inflow of overseas Filipino remittances,” Pe said.

“We also anticipate the positive impact of declining oil prices and pre-election spending to substantially kick in this year,” she said.

In 2014, RRHI ended with a total of 1,327 stores. In its 34-year retail history, last year was the single biggest year in terms of store expansion, with 263 new stores opened across all formats for a total selling space of 888,000 square meters.

Robinsons Supermarket – the group’s largest retailing format – opened its first premium supermarket Robinsons Selections and the 100th branch in Bonifacio Global City. Convenience store arm Ministop reached the 400-store milestone while drugstore unit South Star breached the 300-store network.

Despite the presence of many players, Pe said the Philippines was still vastly underpenetrated in terms of modern retail.

“There is an abundant stream of unexplored areas to enter and plenty of opportunities for market consolidation. The quest for more retail space will continue for our company,” Pe said.

RRHI’s various store formats are now present in 84 out of 144 cities in the Philippines.