Robinsons Retail Holdings Inc., the retail arm of the Gokongwei Group, is increasing capital expenditure this year to as much as P7 billion from P4.74 billion as it expands its retail network on expectation of strong economic growth and consumer spending.
The company told an investor briefing late Thursday that “organic capex” for 2023 will be in the range of P5 billion and P7 billion, which will be financed with internally generated cash. Capital spending will go mainly to the plan to open 180-200 new stores—net of closures—after a net opening of 120 last year.
Same store sales growth is expected between 4 percent and 6 percent this year, a sharp fall from the 26 percent growth last year when it recovered from a 9.6 percent contraction in 2021
Robinsons Retail said that the growth in foot traffic in January was “very good” except for drug store that came from an increase of 40 percent in the first month of 2022.
Robinsons Retail posted record net profits in 2022, up 27 percent year-on-year to P5.4 billion—an amount higher than pre-pandemic levels. Net sales was up 17 percent to P178.8 billion.
The company operates Robinsons supermarkets and department stores, South Star Drug, international brands Handyman Do it Best, True Value, Toys “R” Us, Ministop rebranded as Uncle John, Daiso Japan, Pet Lovers Centre, No Brand, and domestic brands Savers Appliances, The Generics Pharmacy, and Super50.
