With consumer spending having mostly recovered from the effects of the pandemic, tycoon Manuel B. Villar Jr. is now ready to resume the expansion programs of its two retail chains AllHome Corporation and AllDay Supermarkets.
“By next year, we will resume our expansion. We will start with the expansion of AllDay and AllHome next year,” said Villar who controls both retail chains as well as his other retail and restaurant concepts through AllValue Holdings Inc.
He disclosed that the upcoming expansion will focus on smaller, free-standing stores that still offer the same products and services as their bigger counterparts.
“We started our expansion with big store formats but we are now discovering that smaller store formats can also work in some areas,” Villar said.
AllDay Supermarket, owned by publicly-listed AllDay Marts Inc., is the Philippines’ fastest-growing supermarket operator while AllHome is a listed pioneering one-stop full-line home center.
With consumers returning to brick-and-mortar stores to shop for their grocery needs, AllDay Supermarket reported that its net income surged to P172 million in the first half of 2023 from P12 million in the same period last year.
“We are pleased with AllDay’s steady business results for the first half of 2023,” said Villar. Revenues grew 6.6 percent to P4.90 billion for the first half of 2023.
He noted that, “with the return of customers to in-person retail or revenge retail giving rise to many opportunities, our supermarket concept continues to capitalize on a market that is getting a lot more comfortable with spending time shopping in-store again.”
Meanwhile, a growing number of homeowners furnishing their condominium units boosted the second quarter earnings of AllHome—an impressive reversal of its first quarter 2023 performance.
After trending downward in the first quarter of the year, AllHome saw its net income surge 99.1 percent to P442 million in the first half of 2023 on the back of a three percent uptick in revenues to P3.12 billion in in the second quarter of 2023.
“Our second quarter 2023 performance is a reminder of AllHome’s capability to quickly adapt to shifting consumer spending, and we expect to sustain this energy as we move towards the second half of the year,” said Villar.
He added that, “as we head into the historically strong quarters of AllHome and a positive 2024 outlook that sees a rise in condominium turnovers—which means entry into the furnishing stage—we view the balance year of 2023 with much confidence and optimism.”
“We are at looking at every angle to maximize revenue potential for the chain, and I am pleased that our initiatives to strengthen AllHome’s leadership, operations and efficiencies are bearing fruit,” Villar noted.
AllHome’s marked improvements for the second quarter of 2023 are attributed to a healthy sales uptake in both its soft and hard categories.