Wilcon Depot holding talks with providers for online store opening
Newly listed Wilcon Depot, a leading home improvement and construction supplies retailer, is creating an e-commerce platform to complement sales from its expanding store network.
Wilcon debuted on the Philippine Stock Exchange on Friday following a P7.03-billion initial public offering (IPO).
Asked whether the company would put in place an online market strategy, Wilcon founder and chair William Belo said the group was “doing initial discussions with some providers.”
Belo said Wilcon was looking to open an online selling platform for some of its basic products. However, he said that for people building houses, they would typically not rely on the internet to look for materials like tiles. These are the things that people would want to do ocular inspection on.
“But we do have some items like tools, furniture, appliances; these can go online,” Belo said. “We’re working on that.”
Once Wilcon puts in place its online strategy, Belo said the company would likely outsource delivery operations.
Belo recognizes that an online strategy would be crucial in catering to consumers’ needs and changing preferences.
Wilcon plans to build a network of 65 stores across the country with a net selling space of about 530,000 square meters in the next five years or more than double the current net selling area of about 250,000 square meters in its 37 stores.
At present, Wilcon generates yearly sales of P55,000 to P60,000 from each square meter of selling space. If and when more consumers embrace online shopping, an online selling strategy can boost any retailer’s sales without any need for additional physical selling place.
This year, Belo expects Wilcon’s same-store sales growth to be sustained at 5-6 percent, similar to the pace seen in the last few years.
Asked whether he was worried about competition from “pop-up” warehouses selling similar products at a lower price, Belo said such pop-up stores had been there in the last 10 to 15 years. “It’s not a big worry for us,” he said, adding that these challengers were unable to match the diversity and quality of products offered by Wilcon.
Belo said Wilcon’s best-selling stores, to date, were in Metro Manila: Balintawak, Libis, Makati, Alabang and Las Piñas area. “Practically, most of our branches in Metro Manila are doing very well,” he said.
Next to Manila, Calabarzon—referring to Cavite, Laguna, Batangas, Rizal and Quezon— is Wilcon’s next biggest market. Wilcon has at least seven branches in this growth area.
Outside of Luzon, Wilcon has two stores each in Visayas and Mindanao.
Wilcon currently keeps around P7 billion worth of inventory. This is expected to increase by 20-30 percent as Wilcon expands to provincial areas. —DORIS DUMLAO-ABADILLA
