40 going steady

Toast to 40 years (From left) Toby Claudio, QII President; Bobby Claudio, Quorum Holdings CEO; Jojo Claudio, Quorum Holdings COO and Rod Claudio, SRI President.

Nobody predicted that the small toy store that opened without fanfare in 1978, at one corner of the old Virra Mall in Greenhills Shopping Center, will become the largest sporting goods retailer in the Philippines.

Not even founder Roberto S. Claudio, whose first Toby’s Forms and Shapes store sold Mickey Mouse hats and other pop culture memorabilia, with skateboards as its first sports-related merchandise.

But what Claudio did know from the beginning was that he wanted Toby’s to be “a trusted ally” of millions of Filipinos nationwide.

Conglomerate

And much to the delight of Claudio, and his brothers who helped him grow the company from its toy store beginnings, Toby’s, now part of conglomerate Quorum Holdings, has become more than just a trusted ally, but also a partner of Filipinos who want to lead a more healthy and active lifestyle.

It was also the seed from which grew the Quorum Group that has seven companies – Quorum International Inc,  Sports Resources, which just celebrated its 25th anniversary, Sportsplex, Anita Realty and affiliates Fit Inc, Total Sports and Cyclesport.

Across these seven companies, 18 franchisees and the 60 stores across the country are some 1,000 employees committed to the belief that sport “has the power to inspire and change lives.”

At 40 years old, the Quorum Group has renewed its dedication “to help every individual become an extraordinary champion.”

Quorum International Inc. President Toby Claudio, after whom the Toby’s chain was named, said that having the passion and knowledge of the sports categories are some of the ingredients that enabled Toby’s to survive.

This despite fierce competition coming from both local and more foreign brands, which are taking advantage of the liberalized retail environment in the Philippines.

“Retailers with big home markets find it easy to expand globally. And when they expand, they come in a big way,” Claudio told the Inquirer, “so to be a successful homegrown brand, you must know your category, and have a passion for it.”

Toby’s CEO Toby Claudio

Passion

Claudio imbibed that intense passion for sports having grown in a family that lives an active lifestyle.

They all played sports, Claudio said.

Toby’s father, Roberto, was the first racquet stringer in the Toby’s store in Greenhills. His uncles and co-founders also knew how to change the grips.

They were avid sportsmen, with hours spent on badminton, golf and basketball.

That intimate knowledge of sports has helped make Toby’s develop a closer relationship with its clients.

Toby’s people know what they are talking about, helping those who come through the doors get the right equipment or shoes for them to pursue what they want to do.

Thus, it did not take long for the Toby’s group to expand and celebrate milestones.

In 1990, for example, Toby’s became one of the first Philippine retailers to enter the digital age with the launch of its website, www.tobys.com.

Then in 2000, Toby’s Sports opened its first large-format interactive flagship store called Toby’s Arena.

In 2013, it unveiled a new store look to reflect its new design philosophy and in 2017, it launched its revamped e-commerce site to extend its service beyond mall hours and bring Toby’s Sports closer to its customers.

Claudio said the Quorum Group simply cannot afford to stand still as competitors are always waiting in the wings to snatch unprotected territory.

One key innovation is the investment in 2004 in Total Sports Technology Inc., manufacturer of proudly local sportswear brand Equipe. The group also produces its own line of fitness equipment and sporting goods, in a bid to cater to different markets.

Value for money

“That was one way we wanted to make sure we have a value for money offering,” Claudio said, “Now we have our own brands for practically every category. We are good enough to have our own brands, which we design ourselves and produce with the help of local and regional suppliers.”

Quorum has also remained relevant by properly segmenting its business.

From one-size-fits all branches that crammed goods and apparel for all kinds of supports, Quorum invested in RUNNR, a running specialty store and urbanAthletics, a cutting edge street lifestyle store.

And that expansion was underwritten mainly by internally-generated cash as the Carpios are allergic to expanding mainly on borrowed money.

“We also follow a very strict cadence on upgrading of stores. Others will probably renovate every eight to 10 years. But we renovate every fix to six years, on the dot. We always want to keep it fresh and stay current,” said Claudio.

Tobys BHS perspective layout lower ground floor

Flagship store

The latest of these branches is the Toby’s Flagship store in BGC, which promises to be a paradise for sports and healthy lifestyle enthusiasts.

Designed by one of the leading retail design companies in the world, the Flagship, set to open in October, will be “an experience” store unlike any other.

“We are confident that the store will be an iconic retail experience. It is our gift to the Philippine sporting public and a statement that even after 40 years, we are still improving and still innovating,” Claudio said in his speech during the official celebration of the group’s 40th anniversary.

Legacy

Part of the legacy building is the more aggressive push into e-commerce with www.tobys.com and urbanathletics.com.ph.

“I’m happy to announce that our team is winning that challenge as well, with tobys.com now among the top e-commerce sites in the Philippines,” said Claudio.

The revamped Toby’s site is just about a year old but on its way to becoming the largest individual Toby’s outlet in terms of sales.

These are being driven by buyers below 40 years old who are used to buying goods online.

The twin developments of having an enhanced online presence and further expanding the already large retail footprint just marks the latest chapter in the continuing story of Toby’s, which is already being prepared for eventual turnover to the next generation of Claudios imbued with the same love for country, retailing and sports.