Robinsons Retail allots P5B for capex, to open 200 new stores

Robinsons Galleria Cebu

Robinsons Retail Holdings Inc. (RRHI), the retail arm of the Gokongwei group, is allotting P5 billion for capital expenditures in 2016, 59.24 percent higher than the P3.14 billion it spent last year.

During the firm’s annual stockholders’ meeting, RRHI president Robina Gokongwei-Pe said RRHI intends to open 200 new stores for the year, mostly convenience stores and supermarkets, to further expand its store count of 1,506 as of the end of 2015.

The firm’s convenience store chain, Ministop, will be expanded mainly through franchising to increase the percentage of franchise stores to 60 percent. She said some existing stores will also be turned over to franchisees.

RRHI also plans to build one to two community malls under the “Robinsons Townville” brand annually starting 2016 within Metro Manila. Gokongwei-Pe said each of these community malls will cost about P300 million to P400 million.

The company is also aiming to grow its same-store-sales by 3 percent to 5 percent this year, with gross profit margin increasing between 10 to 20 basis points.

Gokongwei also said the company will continue to look at mergers and acquisitions to further drive growth. RRHI closed 2015 with a total gross floor area of 974,000 square meters.

Robinsons Retail currently operates 10 retail formats under its department stores, supermarkets, home improvement stores, convenience stores, drug stores and specialty stores.

The company recently announced acquiring 51 per cent of The Generics Pharmacy (TGP), the country’s largest and fastest growing generics drugstore chain with over 1,800 stores.

Its acquisition of TGP combined with South Star Drug will put the retail drugstore network of the Gokongwei-led group to nearly 2,200 stores nationwide, the largest in terms of the total number of store outlets in the country, targeting all types of consumers and covering all segments of the drugstore business.
Read more at http://www.mb.com.ph/robinsons-retail-allots-p5b-for-capex-to-open-200-new-stores/#FhYHELcFlZvES8b2.99

Source: http://www.mb.com.ph/robinsons-retail-allots-p5b-for-capex-to-open-200-new-stores/