Metro Retail suffers ₧450-M loss due to sluggish sales

Cebu-based retailer Metro Retail stores Group Inc. on Wednesday said it posted a net loss of P449.6 million last year, a reversal of the P775.6-million net income recorded in 2019.

The company that operates a chain of department stores and supermarkets attributed the losses to the sluggish sales of its general merchandise products and the temporary closure of its department stores. Net sales fell 15 percent to P31.3 billion from the previous year’s P36.8 billion.

Total food retail business rose

slightly but the company’s general merchandise business declined by 45 percent from last year due to the temporary closure of department stores in March last year.

While the stores were gradually re-opened, the segment continued to face customer traffic constraints as community quarantine levels were still in effect and consumers prioritized the purchase of essential goods.

Metro Retail also had to close down unprofitable department store operations, preparing for a better consolidation for the future.

Blended same stores sales declined by 19.3 percent over the same period last year brought about by the decline in sales of the general merchandise business.

“Looking at the history of Metro, we have had a track record of success and this is because we’ve remained flexible and have focused on our customers,” Manuel Alberto, the company’s president and COO, said.

“We will continue to explore opportunities and innovate amid the rapidly evolving landscape so we can bring our brand of excellence to consumers across the country.”

The company said it aims to continue to meet consumer demand in the areas where it operates and to intensify its brand by expanding its offerings. The company is also ramping up its presence in multiple channels and continues to implement innovations and updates in its physical stores as well as on its e-commerce platform.

The company said it will continue to expand its network. Last January 29, Metro Ayala Cebu, the company’s flagship store reopened while two new stores—metro Danao and Metro Tacloban—opened in February and March, respectively.

Metro Supermarket in Ayala Center Cebu was recently re-certified for Good Manufacturing Practices and Hazard Analysis and Critical Control Points or HACCP seal. Currently, the company is the only retailer that holds GMP and HACCP citations for 4 of its supermarkets in Alabang, Cebu, Mandaue and Taguig.