Metro Retail revisiting network expansion plan

MANILA, Philippines —  Metro Retail Stores Group Inc., the listed retail company of the Gaisano Group, is revisiting its network expansion plan and strategies to adapt to the changing preferences of Filipino consumers.

Metro Retail chairperson Sherisa Nuesa said for next year, the company is looking to add 12 more stores in its network with a budget of around P5 billion to P10 billion.

The company currently has 70 branches across Luzon and the Visayas under the store formats Metro Supermarket, Metro Department Store, Super Metro Hypermarket and Metro Value Mart.

“Next year, we are looking to add about a dozen stores but we are not building as fast anymore because we’re watching how things are evolving and we really want to identify certain target markets more intimately,” Nuesa said.

“There has been a lot of change. The lifestyle of the Filipino consumers has evolved so we cannot use the same tactics and apply the same strategies. We are looking at smaller formats and then we try to match the merchandising assortment accordingly,” she said.

Metro Retail has previously set a goal of having a network of 160 stores by 2027.

“It is really not a slowdown but a more deliberate plan to really prepare for the future because we really do not want to use the same strategies in a market that has radically changed,” Nuesa said.

“Part of what’s happening with all these changing environment is that we are revisiting as well our network expansion plan. But we’re definitely opening more stores and more focused on the neighborhood stores because the smaller formats have become our preferred format nowadays because people actually look for convenience,” she said.

Nuesa said the new stores to be opened next year would mostly be in the Visayas, particularly in Negros, Leyte and Cebu.

She said that these branches would be more on the neighborhood store format with a size of between 800 square meters and 1,000 square meters.

“Given the focus on food retail, we really have to revisit how we manage our spaces. So it can be challenging to have very large spaces when you you’re competing with the cheaper online brands. However, there’s still a market,” Nuesa said.

“Our market, being in the broader market and being in the provinces, there are also opportunities as people start embracing modern retail. Unlike before, many would still buy from the public markets or their sari-sari stores. They now prefer the convenience and the comfort of being in a better environment,” she said.

Aside from its stores, Metro Retail also provides online shopping services through shopmetro.ph, allowing customers to choose between home delivery and pick-up at the nearest Metro Store.

Metro Retail also ventured recently into the home improvement store format to further solidify its presence in the country’s retail landscape.