Fresh from announcing record profit growth, Philippines specialty retail operator SSI Group says it plans to open 130 new stores this year.
The expansion plan will be ramped up even further if current discussions with four international fashion brands not yet launched in the Philippines come to fruition. They could arrive late this year or in early 2016.
As reported by Inside Retail Asia on Tuesday, SSI Group grew topline sales by 19 per cent last year and achieved a 63 per cent increase in profit.
It ended the year with 723 specialty stores and 134,000 sqm of retail trading area. The company’s brand portfolio includes Marks and Spencer, Gucci, Burberry, Hermès, Prada, Salvatore Ferragamo, Lacoste, Michael Kors, Kate Spade, Gap, Bershka, Aeropostale, Samsonite, Nine West and Payless Shoe Source.
SSI President Anton T Huang said the company will continue its expansion strategy, with plans to add 21,000 sqm of trading area this year and a further 16,000 sqm in 2016.
The growth is being spurred by the growing disposable income of middle class Filipinos and rapid development of new shopping malls.
SSI already has a presence in at least 70 shopping centres across the country.
The last three years saw SSI add 64,000 sqm of retail space, more than half of that opening last year alone.
“There really is a very steady supply of new shopping malls coming up, just taking into account the continued growth in consumption expenditure and increasing sophistication of consumers not only in suburban areas within the metropolis but in secondary cities throughout the country,” Huang said.
“Just looking at 2014, it was a very good year for us… We grew our top line sales by 19 per cent and in terms of fourth quarter alone, we grew our top line sales by 26 per cent,” said Huang.
