Metro Retail eyes 7 add’l stores

MANILA, Philippines -  Gaisano led Metro Retail Stores Group Inc.(MRSGI) is spending P10 billion for the construction of seven new stores this year in line with its goal to double its gross floor area (GFA) by 2020.

In a disclosure to the Philippine Stock Exchange yesterday, MRSGI said it plans to expand its total GFA portfolio to 800, 000 square meters  in four years.

The company, however, did not disclose the locations for these upcoming sites.

Last year, MRSGI expanded its total GFA to 440,000 square meters with the opening of four new stores. This brought the company’s total number of stores to 50 as of the end of 2016.

In the same year, the listed retailer reported a net income of P789.5 million, up 4.5 percent as net sales increased to P34.4 billion from P32.3 billion.

The company attributed the growth in sales to the country's strong economy, which is creating higher disposable incomes of consumers.

“Our expansion and partnerships enable MRSGI to consistently grow its footprint and serve more customers,” said MRSGI chairman and chief executive officer Frank Gaisano.

The company previously partnered with property giant Ayala Land Inc. for the establishment of stores in four Ayala commercial developments namely Capitol Central in Bacolod City, Negros Occidental, The Shops at Atria in Mandurriao, Iloilo City; Central Bloc in Cebu City and the Ayala Malls Feliz in Cainta, Rizal.

MRSGI recently opened its 51st store, located in Canduman, Mandaue City.

The Gaisano-led retailer is beefing up its logistics and supply chain modernization program to ensure timely delivery of goods and improvement in overall cost efficiency.

Aside from shifting to in-house management of its warehouses, the company also embarked on systems modernization by opening up facilities, improving processes in its operations, ensuring optimized use of retail management software and investing on greater personnel capabilities.