Retailers show faster Q2 growth on store expansion

SOME of the country’s top retailers saw faster growth in the second quarter, on the back of their store expansion program and strong consumer demand.

Puregold Price Club, Inc. improved its consolidated net income by 9% to P1.21 billion in the April to June period, from the P1.11 billion booked a year ago, according to a regulatory filing.

The grocery operator owned by billionaire Lucio L. Co earned P2.49 billion in the first semester, up 9.8% from the P2.27 billion in the same period in 2016. Consolidated net margins was flat at 4.4% in the six months through June.

“We continue to see growth in both our Puregold and S&R businesses even without the benefits of election year,” Puregold President Ferdinand Vincent P. Co was quoted in the statement as saying.

Consolidated net sales went up by an annual 10.8% — a shade above the upper end of its 8-10% guidance for the full year — to P56.6 billion in the first semester from P51 billion, fueled by the 26 Puregold stores and two S&R Membership warehouses that opened in 2016.

Same-store sales inched up 4% for Puregold stores and 10% for S&R stores, driven by robust consumer demand and the country’s strong economic growth momentum. Growth figures topped the 2-3% target range for expansion in same-store sales for the full year.

At end June, the retailer was operating 345 stores comprising 288 Puregold stores, 12 S&R membership shopping warehouse, 28 S&R New York Style outlets, nine NE Bodega Supermarkets and eight Budgetlane Supermarkets.

For the year, the company is rolling out 25 new Puregold stores and two new S&R warehouse. S&R is currently developing two new branches for opening in 2018.

ROBINSONS RETAIL

Meanwhile, earnings of Robinsons Retail Holdings, Inc. (RRHI) gained 3.9% in the April to June period, lifted by the addition of more stores under the company’s network.

In a statement issued on Monday, RRHI posted P1.286 billion in net income attributable to the parent, higher than the P1.238 billion booked a year ago. Revenues, meanwhile, advanced to P27.76 billion, 8.3% higher year on year.

Including results from the first quarter, RRHI grew its attributable profit by 12.8% to P2.282 billion, against the P2.023 billion in the same period in 2016. Consolidated net sales further increased by 10.7% to P53.486 billion during the January to June period.

The company attributed the increase to “resilient” samestore sales growth, which normalized at 2.7% from 8.9% last year driven by election spending, alongside the sales contribution of new stores.

RRHI added 91 stores to end June with a count of 1,619. This translates to a gross floor area of 1.066 million square meters, up by 6.9% year on year. Including its franchised store portfolio of The Generics Pharmacy, the company’s store network would be at 3,573.

SSI GROUP

SSI Group, Inc. increased its net income attributable to the parent by 17% to P139 million in the second quarter, according to a regulatory filing. Revenues were almost flat at P4.16 billion, against the P4.26 billion booked a year ago.

The growth was driven by the positive performance of its 665 stores in the country spanning an area of 133,000 square meters. Aside from traditional stores, the company also operated e-commerce platforms for Payless ShoeSource, Lacoste and Beauty Bar.

For the first half, the company’s attributable income went up 14% to P274 million, as revenues hit P8.42 billion.

“Our first half results reflect resilient consumer demand as well as the execution of strategies intended to increase operating margins, maximize the efficiency of our store network and strengthen our brand portfolio. We are pleased with the progress we have made so far and expect to continue to benefit from these factors during the second half of the year,” SSI President Anthony T. Huang said in a statement. —