September 9, 2024 | 12:00am
MANILA, Philippines — Robinsons Retail Holdings Inc. (RRHI) is looking to diversify into new market segments with a number of brands currently on its add-to-cart list of potential acquisitions.
RRHI COO Stanley Co told The STAR in an interview that the company is targeting to acquire new brands that would further diversify its current portfolio.
“There are a few that we’re looking at but we are still not at liberty to divulge right now. From time to time we’re always looking for opportunities,” he said.
Asked on which segments are these potential acquisitions, Co said “something that we don’t have yet.”
Co said he is hopeful that one of these potential purchases can push through within the year.
As one of the country’s largest multi-format retailers, RRHI currently has an expansive network of food stores, drugstores, department stores, do-it-yourself stores and specialty stores.
The brands under its portfolio include Uncle John’s, Shopwise, The Marketplace, Handyman, True Value, No Brand, Daisy Japan, The Generics Pharmacy (TGP), Southstar Drug, Rose Pharmacy, Toys ”R” Us as well as Robinsons Supermarket, Easymart and Department Store, among others.
For the second semester, RRHI is optimistic it can sustain its strong momentum in the first half as it accelerates store openings while moderating inflation is seen as a boon for consumer spending.
Co said RRHI could still open about 100 more stores before the year ends.
“There’s one economic indicator that we’re closely watching and that is inflation. And lately, we’ve seen inflation going down and as it improves, there is more propensity for our shoppers to spend because the purchasing power becomes larger,” Co said.
“Recently, prices of commodities have been declining, even the price of fuel has been going down. So the more savings that we derived from those commodities, the more that our consumers are able to channel their spending into something else. Meaning the share of wallet is getting smaller for their basic needs and they have more for the others,” he said.
Co, who has been with the company for more than two decades, is set to take on Robina Gokongwei-Pe’s role as RRHI president and CEO starting next year.
Gokongwei-Pe will transition to the role of chairman effective Jan. 1, 2025.
“We’ll continue that drive to expand aggressively, particularly in underserved territories. For us, so long as there is a community that we can serve, definitely we’ll be there whether it’s our food segment, our drugstore, our hardware store, all of them,” Co said.
RRHI ended the first half with a total of 2,401 stores consisting of 755 food stores, 1,082 drugstores, 49 department stores, 224 DIY stores and 291 specialty stores. It also has over 2,100 franchised stores of TGP.
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