Robinsons Retail Holdings Inc. is increasing its investment budget by 150 percent to P7 billion this year to acquire new stores, build more outlets and bring global brands into the local market. The retail unit of the Gokongwei group said the 2014 capital expenditures would be higher than P2.8 billion it spent in 20
Robinsons Retail Holdings Inc. is increasing its investment budget by 150 percent to P7 billion this year to acquire new stores, build more outlets and bring global brands into the local market.
The retail unit of the Gokongwei group said the 2014 capital expenditures would be higher than P2.8 billion it spent in 2013, which primarily funded store expansion.
Robinsons Retail president and chief operating officer Robina Gokongwei-Pe said during the annual stockholders' meeting the company was on the lookout for possible acquisition targets and planned to expand into other retail segments and pursue franchising deals with new global brands.
The company will also pursue mergers and acquisitions to speed up expansion plans, she said.
“2014 will be an exciting year for Robinsons Retail and greater milestones are yet to happen for us. The Philippine retail market is still highly under-penetrated with significant potential for growth and further upside that will benefit our expansion plans,” Gokongwei-Pe said.
“We are banking on the attractive macro-economic environment, which includes rising middle income, shift from traditional to modern retail and increasing disposable income,” she said.
Robinsons Retail posted a core net income of P530 million in the first quarter, up 15.2 percent from the same period a year ago.
Consolidated net sales grew 16.1 percent in the first three months to P15 billion, driven by sales contribution of newly built stores and newly acquired outlets.