Ayala enters department store business
The Philippines-based mall developer Ayala Land, together with Rustan’s Group, will enter the department store business.
The two companies are said to open their first department store to anchor a new Ayala mall called Fairview Terraces in Quezon City.
Designed by Benoy, Fairview Terraces is a five level, mixed-use retail development scheduled to open by the end of next year.
While a late entrant into the retailing business, Ayala is optimistic that by partnering with Rustan’s Group, which is one of the Philippines’ largest retail group, the new venture will thrive.
The department stores will occupy around 10,000 sqm of retail space, says ALI CFO Jaime Ysmael.
Ysmael added that Ayala malls will maintain existing department store partnerships.
“We will still have that kind of relationship with existing partners. It’s just that we want to put up our own so that we can move faster than that we’ll be able to do if we don’t have our own department stores,” said Ysmael.
Ayala and Rustan’s Group, through a joint venture with SIAL CVS Retailers, have recently signed a development agreement with Japanese convenience store chain FamilyMart to operate in the Philippines.