Robinsons Retail Holdings Inc. is intensifying efforts to grow its private label business as a strategy to enhance margins and fuel expansion in the coming years, according to company executives at the Philippine Stock Exchange’s Strengthening Access and Reach (STAR) Investor Day.
Gina Dipaling, vice president for corporate planning at Robinsons Retail, said that increasing the contribution of private label products to the company’s total sales is central to its short- to medium-term growth plans. With the private labels segment currently making up 17 percent of the company’s revenue for the first nine months of the year, Dipaling sees considerable potential for further expansion.
“There’s still room to increase our margins, and that will come from increasing the share of private label products in total sales. The key here is increasing the topline,” Dipaling said. “In the next three to five years, we plan to accelerate our store openings to boost both topline and margins.”
Private label products, which are manufactured by one company but sold under another company’s brand, are becoming increasingly important to retailers seeking to offer exclusive items, differentiate from competitors, and optimize pricing strategies. Dipaling said that Robinsons Retail’s private label segment has already grown from 12 percent of total revenue last year to 17 percent this year, driven by an improved category mix and a focus on expanding its portfolio of imported and private-label goods.
To further accelerate growth, Robinsons Retail is focusing on expanding its retail footprint. Dipaling shared that the company aims to open between 200 and 300 new stores next year as part of its scaling strategy. Among the areas of focus for expansion are the hard-discount store chain, OSave, in which Robinsons Retail holds a 23 percent stake through its Singapore-incorporated subsidiary, HD Retail PTE Ltd. OSave, which currently operates 318 stores across Luzon, is expected to increase its footprint to 400 locations by the end of 2024.
“We need to scale up our business, and part of that involves the expansion of OSave,” Dipaling said. “Next year, we’re looking to add even more locations to capture the growing demand in the discount retail sector.”
The company is also ramping up its investment in Robinsons Easymart, a neighborhood supermarket chain with 3,000 to 6,500 SKUs (stock keeping units), which offers customers a more comprehensive selection compared to discount stores that typically carry 500 to 600 SKUs. This expanded product offering is intended to cater to a wider customer base and compete effectively with other supermarkets.
Beyond grocery retail, Robinsons Retail is exploring opportunities in the pet retail market, with plans to enhance its product range and introduce new services such as grooming. Dipaling noted that the company plans to continue expanding its pet retail segment and open additional stores in 2025.
With an ambitious growth strategy in place, Robinsons Retail is positioning itself to capture a larger share of the market through a combination of private-label products, an expanded store network, and a diverse range of services.
