Several weeks before its debut in the country’s equity market, Robinsons Retail Holdings Inc. (RRHI), the retail group of the Gokongwei family, has started to ponder on plans of expanding into
other business segments such as home furniture and coffee shops.
Justiano Gadia, general manager of RRHI, said that besides the plan to establish 1,400 stores by the end of next year, the group also started to seek opportunities in other businesses.
“We intend to pursue acquisition opportunities where we see significant growth potential. We will tap opportunities in the home furniture segment, school and office supplies, and even coffee shops,” he said.
According to him, the group will focus its expansion primarily in the growth of the number of its stores, whether through building of new stores or acquisitions, as well as in the growth of its retail offerings.
“We will focus our expansion primarily in three major formats, the Robinsons supermarket small compact neighborhood stores, convenient stores, as well as our pharmacy, South Star drugstore,” Gadia said.
“In addition, we will also explore acquisitions of small regional supermarket chains, pharmacy chains, as well as DiY [do-it yourself] chain,” he added.
In the retail segment, Gadia said the group intends to partner with other international brands to augment its existing portfolio, specifying that recently, RRHI signed an agreement with G200 of Hong Kong and Basic House of Korea.
“Our third key strategy for the entire Robinsons Retail group is actually our very key important goal for the group, which is the enhancement of the same store sale growth across all formats. We will do this by providing a broader range of competitive products with highly competitive prices,” he further said.
RRHI will spend as much as P3.5 billion for its stores expansion alone, targeting to have 1,400 stores by the end of 2014.
The company also decided to raise as much as P32 billion from its initial public offering (IPO) from the original P42 billion.
During the company’s IPO domestic investors’ briefing held on Monday, Maybank ATR Kim Eng Capital Executive Director Dennis Du announced that the IPO price range for RRHI’s shares will be P55 to P66 each share, lower than the previous maximum price of P86.64 apiece.
The shares of RRHI will be listed at the Philippine Stock Exchange on November 11.