Metro Retail books loss in 2020

LISTED Metro Retail Sales Group Inc. (MRSGI) incurred a net loss of P449.6 million last year as the pandemic slumped its full-year net sales by 15 percent to P31.3 billion from P36.8 billion year-on-year.

In a filing to the exchange, the Cebu-based retailer said that while its food retail business inched up by 1.1 percent year-on-year, its general merchandise business dropped by 45.7 percent in 2020 amid temporary closure of department stores in March.

As a result of weaker sales of its general merchandise business, Metro Retail’s blended same stores sales recorded a 19.3-percent decline 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. MRSGI also closed unprofitable department store operations, preparing for a better consolidation for the future,” Metro Retail explained.

Despite the bleak financial results, the retail company said they remain bullish and are looking forward to serving their customers in 2021 and beyond.

Metro Retail said they are ramping up their presence in multiple channels and continue to innovate its physical stores and e-commerce platform.

The company also reiterated its commitment to expanding its network. It also reopened its flagship store in Cebu last January and launched two stores in Danao and Tacloban last February and March.

“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. 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,” MRSGI President and Chief Operating Officer Manuel Alberto was quoted as saying.

Shares of MRSGI slipped by 2 centavos or 1.52 percent to close at P1.30 each on Wednesday.