Robinsons Retail is looking to shrink its fashion business as competition with cheaper chains gets tougher.
“We are shrinking fashion, for it has become very difficult,” said the firm’s CEO Gokongwei-Pe. “There are other brands that came in who are more progressive and cheaper. We are already reducing the number of stores and we have to think if we move out altogether.”
The firm is reporting stronger returns from pet, health and beauty products where there is growing demand.
“Pets have become very big,” added Gokongwei-Pe. “Dogs now are very spoiled. Just look at Instagram and Facebook, it’s all about dogs. You should put money where the money is, which is food, drugstores, hardware, and growing businesses like pets and beauty.”
The firm is also making moves into high-end groceries as well as growing its beauty and pet care franchises overseas. It is reportedly seeking 15 per cent annual revenue growth in these sectors within five years.
Robinsons Retail is also investing PHP3–5 billion (US$58.59–97.65 million) on expanding its store network by 100–150 outlets per year from its current 1911 stores during the same period.