Metro Gaisano maps out expansion in Luzon areas

The Metro Gaisano chain of department and supermarket stores is focusing its expansion plan starting this year in the Luzon areas, as Visayas and Mindanao are already captured by other Gaisano retail operators.

"My cousins are already present in other Visayas and Mindanao areas, we'd rather expand in Luzon," said Jack Gaisano, president of Vicsal Development Corporation, the company that operates retail chain Metro Gaisano group.

This year, Gaisano said the company will open another store in Luzon, in Angeles, Pampanga. This would add to its three stores already located in Luzon, in Market!Market! shopping mall in Metro Manila, Legaspi, and Lucena City.

As of now, Gaisano said the company is still adopting "wait and see" attitude because of the upcoming elections. The company however, will consider another expansion option after election, he said.

Although, other retail giants are strongly positioning itself in Cebu, such as the recent announcement of SM Group to build two more malls in Cebu, Gaisano said Metro Gaisano cannot compete with the SM Group, "SM is more mature and established already. We are only an anchor store, we don't build shopping malls," he said.

He said the Visayas and Mindanao market is also potential for expansion, but he would not compete with his cousins who are already positioned in these areas.

Metro Gaisano, which is a retail arm of Vicsal Development Corporation, reported a 10 percent growth towards the end of 2006, attributing the increasing OFW remittances, and the growth of BPO investments that fueled the good shape of retail industry.

In an earlier interview with Jack's brother, Eduard Gaisano the relatively good performance last year is a good indicator that has made the company to consider more expansions starting this year.

Metro Gaisano is the only Cebu-based retail player that has successfully entered the competitive Manila market.

Eduard Gaisano said OFW remittance plays a very vital role in the retail industry, as well as the improved employment generation locally, brought about by the entry of BPO investments, especially in Cebu.

In Cebu, there are three Metro Gaisano stores, one in Colon Street, at Ayala Center Cebu, and Mandaue.

Vicsal Development Corporation is also bullish in Cebu's real estate market, as it plans to bare more residential projects soon.