Metro Retail builds seven stores
Metro Retail Stores Group (MRSGI) will open seven stores this year to jump-start its five-year expansion program in the Philippines.
The Visayan retail giant, MRSGI, will add 36,000sqm-60,000sqm of gross floor area in Luzon and Visayas. Its plan to double its footprint in five years means opening 50 to 70 stores.
“Most of our expansion will come from organic growth composed of stand-alone stores and stores opening in the malls of our partner developers like Ayala Land. We continue to look at acquisition opportunities at the right price but there are still quite a number of cities and municipalities with good sites,” VP for business development Joseph Conrad Balatbat told Business World.
Balatbat said MRSGI is aiming to equal 2015 growth rates in net sales, same-store sales and net income with that of 2016.
MRSGI is looking to boost its capital expenditure this year mostly with funds from its P4-billion initial public offering in November 2015.
“Being a consumption-driven economy, the driver of this growth is the overall growth of the economy, the continued growth of the BPO sector and the steady stream of remittances,” he said.
For MRSGI, the biggest challenges include operating expenses and network expansion, especially with big retailers and mall developers competing for space due to similar expansion plans.