MANILA, Philippines — Home improvement retailer Wilcon Depot Inc. plans to spend up to P2.2 billion this year to support expansion plans, particularly its smaller format stores that thrived during the pandemic lockdowns.
Mary Jean Alger, Wilcon vice president for investor relations, told reporters on Monday that the bulk of the capital spending for the year would go to construction work for at least 10 new stores, as the Belo-led company moved toward its 100-store goal.
As of end-March, Wilcon had 93 stores in various formats after opening three in the first quarter alone.
Of the 10 stores Wilcon plans to open this year, at least four of these will be in the Do-It-Wilcon (DIW) format, according to Rosemarie Bosch-Ong, Wilcon chief operating officer.
DIWs were launched at the height of the pandemic to reach more communities in smaller areas.
Rebound in Q4 seen
“We’re very much encouraged with the results of the DIWs that we’ve opened in the past several months,” she said.
“We’re really tapping those areas where we are not available, or productive or emerging areas wherein we have another large Wilcon Depot,” Ong added.
Wilcon saw its earnings in the first three months of the year dip by 23.1 percent to P740 million on lower sales due to the earlier Easter holiday.
READ: Weak home upgrade trend trimmed Wilcon results in 2023
Net sales declined by 2.5 percent to P8.31 billion due to low March sales and a higher base.
The home improvement sector saw a boom in 2021 to 2022, when homeowners were stuck at home and pursued long overdue renovations.
Now, Alger explained that there was a “softness in demand” globally.
Still, Wilcon expects to rebound in the fourth quarter once interest rates decline, she said.