Metro Retail to build new store in Danao

CEBU, Philippines - Publicly listed Metro Retail Stores is set to build a new store in Danao City, Cebu as part of its expansion commitment in its home province.

In a statement, the Gaisano-led retail giant said the new store is expected to further strengthen its business foothold in Cebu.

The retailer said Danao City is considered as "one of the primary commercial hubs in the Central Visayas region."

The company broke ground the new store site early this month and it plans to build a department store and supermarket there. 

The Cebu-based retail firm maintained its positive outlook on the retail sector, which is mainly boosted by the strong domestic consumption, higher disposable incomes of consumers are expected to contribute further to the retail sector.

"Retail remains one of the most vibrant industries locally,” Chairman and CEO Frank Gaisano had said at the company’s recent annual stockholders meeting.

The company's net sales in the fourth quarter of 2016 grew 7.4 percent compared to the 6.1 percent increase in the first three quarters and 11.6 percent for the same period in 2015, as a result of its operational enhancements.

Metro stores are present in key cities in Central, Western and Eastern Visayas, as well as in Central Luzon, Metro Manila, and South Luzon.

Metro Retail shares closed at P4.60 apiece on Friday, down 1.29 percent.

The strong consumer spending and high consumer confidence have been cited to continue to bode well for the retail market.

Personal consumption spending continues to lift the overall growth of the economy. In 2016, household spending, which accounts for nearly 70 percent of the Philippine economy, increased by 6.9 percent.

Spending is fueled, among others, by remittances from overseas Filipino workers (OFWs), the BPO industry and the rising incomes of Filipinos.

In Cebu, major retail establishments have been developed, responding to the robust retail demand. Cebu City remains a bright spot for retailers as consumer spending continues to drive the province’s economic growth. (FREEMAN)