Metro Retail inks 25-year lease deal with Bais City

CEBU, Philippines - Cebu-based Metro Retail has entered into a 25-year lease agreement with the local government of the City of Bais, Negros Oriental to build its first store in the province as it aims to cement its foothold in Visayas.

The Gaisano-led retailer is leasing a building owned by the city government of Bais, which will be turned over in March 2017.

"The leading Visayas retailer plans to build a hypermarket, offering food and general merchandise retail," the listed retailer disclosed to the Philippine Stock Exchange yesterday.

“We are very much excited to serve the growing city of Bais, and we see a lot of opportunities for mutual growth,” Metro Retail Chairman and CEO Frank S. Gaisano was quoted as saying.

He added the expansion is part of the firm’s strategic goal to double its footprint within five years.

Company officials had earlier said the retailer would invest as much as P15 billion to double its footprint. The company is spending P1.7 billion to P2 billion this year, officials had said.

Gaisano said the Bais store would also serve the neighboring municipalities of Manjuyod, Mabinay, Ayungon, Bindoy, and Tayasan.

Bais City is located 45 kilometers away from Dumaguete City and hosts several sugar mills and is one of Negros Occidental’s largest producers of raw sugar.

The Cebu retailer currently operates 49 stores in supermarket, department store, and hypermarket formats. It recently inked an agreement with Ayala Land, Inc. for its store establishment in four new Ayala commercial developments in Capitol Central in Bacolod City, Negros Occidental; in Mandurriao, Iloilo City; in Central Bloc in Cebu City; and in the Ayala Malls Feliz in Pasig City.

Metro posted a 69.2 percent increase in net income in the first quarter of 2016, driven by strong same store and all-store net sales.

Shares of the company gained 0.18 centavos to P5.28 apiece at noon trading yesterday.  (FREEMAN)