Wilcon Depot Inc., a leading home improvement and construction supplies retailer, remains optimistic about a retail sector rebound in 2025, despite navigating significant challenges in 2024, including rising commodity prices.
Rosemarie B. Ong, COO senior executive vice president, expressed confidence that while external factors such as inflation and global supply chain disruptions continue to impact the business, the company is hopeful for better prospects as public consumption picks up.
“We see improvements in the headwinds from last year, and our outlook is positive. We’re focused on growth, and we’re determined to expand,” Ong told reporters. She added that the company, which recently celebrated the opening of its 100th store, will continue to expand its footprint in underserved markets, with an emphasis on areas outside city centers.
As part of this expansion strategy, Wilcon is experimenting with smaller store formats. While specific numbers on new store openings and capital expenditures were not disclosed, Ong revealed that the company is also looking to renovate its legacy big-box stores to enhance customer experience.
“Our focus is on upgrading older stores to meet evolving customer expectations, making their shopping experience more seamless, convenient, and comfortable,” Ong said. Wilcon’s larger stores, which have been instrumental in driving sales, are now reaching an age where significant renovation is necessary to keep them competitive in the market.
In terms of financial performance, Wilcon reported a slight year-on-year decline of 1% in sales for its depot-format stores in the first nine months of 2024, totaling P24.65 billion, which accounts for 96% of total sales. However, new store openings contributed an additional 4%, helping offset a 5.8% drop in same-store sales.
The company also saw strong performance from its smaller retail formats. The “Do-It-Wilcon” stores, including the original Home Essentials format, recorded a 34% year-on-year growth in net sales, totaling P738 million.
Despite these gains, Wilcon’s income fell by 22 percent to P2.11 billion for the period, reflecting the continued softness in demand for home improvement products amid a challenging economic environment. CEO Lorraine Belo-Cincochan said that prolonged rains and adverse weather conditions in the third quarter further delayed construction activities, contributing to the weaker demand.
Nevertheless, Wilcon remains committed to capitalizing on the growing aspiration for homeownership in the Philippines. “If there’s an American dream, there’s a Filipino dream of owning a home,” Ong said. With the retail sector expected to improve in the coming months, the company is positioned for a promising 2025 as it accelerates both expansion and modernization efforts.
