MANILA, Philippines - The grocery and supermarket arm of the Tantoco family’s Rustan’s retail group is continuing its rapid store expansion this year.
Rustan’s Supercenters Inc. will increase its retail footprint by catering to the needs of various target markets, an executive said.
“Last year, we opened 13 new stores. This year also, we will open 13 in all our formats,†said Rustan’s Supercenters president Bienvenido V. Tantoco III. In 2012, Rustan’s Supercenters opened three retail outlets.
“We will continue to build on the strong momentum Rustans Supermarkets have right now,†Tantoco said, adding that the retail sector is backed by the strong economy and growing consumer spending.
In particular, Wellcome supermarket will lead the growth while new Rustans Supermarkets will be put in urban areas like Makati.
Rustan’s Supercenters is the operator of Rustan’s Supermarkets that cater to the sophisticated and affluent segment, Shopwise hypermarkets that target the middle market and Wellcome supermarkets of leading pan-Asian retailer Dairy Farm. There are around 50 Rustan’s Supercenters-owned stores nationwide.
“For the moment, we are focused on these three brands and on maximizing their growth potential before we diversify to other brands,†Tantoco said.
Tantoco said Rustan’s Supercenters is more confident with the fast expansion program given the backing of a foreign partner.
“They have really helped us move the learning curve fast because they gave us good know-how and they are training the local team,†Tantoco said, adding that Dairy Farm made sure each supermarket format is competitive and responsive to target markets.
In 2012, the Tantoco family sold 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.
Tantoco said Dairy Farm helped build talent internally, a key factor in spurring growth ambitions and in winning customer loyalty.
The acquisition 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 the Philippine market.
The partnership with Dairy Farm ensures that Rustan’s Supercenters is globally competitive, especially with the Asean economic integration in 2015.
Moving forward, the supermarket chain will also help local suppliers to supply other markets of Dairy Farm in the region, Tantoco said.