Robinsons Handyman in expansion binge, eyes IPO

The Gokongwei group is solidifying its position in the retail market with the aggressive expansion of its hardware store chain Robinsons Handyman Inc., which is also being geared up as an IPO (initial public offering) candidate.

Ronnie Ong, general manager of parent firm Robinsons Supermarket, told reporters they are looking at expanding Handyman’s nationwide presence to 50 outlets within the next two years, from its present network of 30 stores.

RHI is a joint venture controlled by Robinsons Supermarket – a member of the JE Summit Group – in partnership with Herco Trading, a leading player in the hardware business.

RHI president Willie Co, who represents Herco Trading, said they envision the company to evolve like "the 7-Eleven of hardware stores," where they will be strategically situated in neighborhoods for the immediate supply of household needs such as lighting, plumbing, construction, gardening, automotive and other home improvement materials.

The company, which started operations in 1994, opened a record 10 new outlets this year, making it the fastest growing hardware chain in the country. Most of these stores are located in Robinsons, Waltermart and Gaisano malls, entailing investments of about P200 million not counting the cost of product inventory.

Ong said their immediate plans include the opening of two big branches, specifically stand-alone stores or those located outside the malls for greater exposure. Also in the pipeline within the next five years are its possible opening up for franchises as well as an IPO, he added.

Last August, the JG Summit group ventured into direct retailing as it inked an agreement with Japan’s Mitsubishi Corp. and Ministop Co. Ltd. to form Robinsons Convenience Store Inc., the corporate entity that will hand out franchises for the Ministop convenience store chain in the Philippines.

The Ministop chain is one of the leading convenience store networks in Japan and Korea, with annual sales last year of almost $2 billion. – Conrado Diaz Jr.