LISTED retailer Robinsons Retail Holdings, Inc. (RRHI) said Tuesday it is allocating P4 billion for its capital expenditure (capex) program this year in line with its goal to expand its presence nationwide.
Following the company’s annual stockholders’ meeting held in Pasig City, RRHI President and Chief Operating Officer Robina Gokongwei-Pe said the capex will be used to finance the establishment of 150 new stores for this year.
“In terms of [the 150]stores, 51 percent will be in Metro Manila, 27 percent in Luzon, which leaves the balance for Visayas and Mindanao,” Gokongwei-Pe said.
The amount does not include the company’s merger and acquisition plans.
“This [also]excludes [The] Generics Pharmacy, which is really a franchise model,” she added.
Gokongwei-Pe said RRHI’s supermarkets business, which is almost half of its business, remains the most profitable among all its segments.
The company said it has already closed several of its retailing stores due to weak profits, keeping only those that are more profitable.
“For the brands that we closed down, I guess people really didn’t like them,” she said.
Last year, RRHI allocated P3 billion for capex excluding mergers and acquisitions.
For this year, the company is planning to achieve sales growth of 2 to 4 percent given the additional stores slated for construction.
Incorporated in 2002, RRHI is owned by the Gokongwei family and was set up to operate its six retail businesses—supermarkets; department stores; hardware stores; convenience stores; drug stores; and specialty stores.