Shopwise accelerates expansion

MANILA, Philippines - The grocery and supermarket arm of the Tantoco family’s Rustan’s retail group is accelerating its expansion program for this year and the next.

Rustan’s Supercenters Inc. is banking on the growing demand of different market segments and the expertise of its new foreign partner to succeed in the expansion, its top executive said.

“This year, we are opening 15 stores. We already opened about three. And next year, we will open more,” said Rustan’s Supercenters president Bienvenido V. Tantoco III.

For next year, Rustan’s Supercenters targets to operate 20 new stores, a record expansion for the company.

In 2012, Rustan’s Supercenters opened three retail outlets.

“We’re at the stage wherein each of our format, we are comfortable with the model,” Tantoco said, noting that the company has established a strong brand and business model.

Rustan’s Supercenters is the operator of Rustan’s Supermarkets that cater to the affluent, Shopwise hypermarkets that target the middle market and Wellcome supermarkets of leading pan-Asian retailer Dairy Farm.

Next year, Wellcome will lead Rustan’s Supercenters’ plans to put up around 20 new branches nationwide, Tantoco said.

“We’re already in Cagayan de Oro and Cebu. We will continue there and hopefully we’re looking at Luzon,” Tantoco said.

Rustan’s Supercenters currently has no plans of listing in the local bourse, preffering a partnership instead.

“We have no plans (to go public). Either we do a partnership or list but we chose partnership because we want more than money,” Tantoco said.

In 2012, the Tantoco family sold a 36-percent stake in Rustan’s Supercenters to Dairy Farm of the Hong Kong-based diversified conglomerate Jardine Matheson Group. Luxury retailer Spinnaker Group also sold its 14-percent stake in Rustan’s Supercenters to the Jardine Group.

The buy-in served as a springboard for Dairy Farm’s strategic plan for long-term growth and further expansion in Asia. It also marked the group’s entry in to the Philippine market.

“A partner gives financial resources and more,” Tantoco said, adding that Dairy Farm is an expert in high quality fresh food.

“They are the biggest customer of many suppliers and we are able to piggyback on that,” he added.

The Tantoco family’s partnership with Dairy Farm is expected to accelerate the expansion of Rustan’s Supercenters and heat up competition in the multi-billion peso industry currently dominated by retail giant SM Group.

Aside from Rustan’s Supercenters the Tantocos also own the Marks & Spencer and Starbucks franchises.

The family also owns Store Specialists Inc. that brought luxury brands Gucci, Salvatore Ferragamo, Tod’s, Prada, Louis Vuitton, Bottega Venetta and Marc Jacobs to the Philippines.