Wilcon Depot Inc. is accelerating its capital expenditure to expand its footprint even as the construction industry grapples with persistent macroeconomic volatility and regulatory delays.

The Philippines’ largest home improvement retailer said the company plans to deploy ₱2.59 billion this year to push its store count to 112 by the end of 2026.

Wilcon Depot’s investment budget for this year is an increase from the ₱2.3 billion spent last year, though it falls short of an earlier ₱3.2 billion target for 2025. Management attributed the underspending to lingering bottlenecks in securing government permits and delays in construction completions.

Wilcon’s aggressive expansion strategy comes at a time when the retail sector is balancing resilient demand with inflationary pressures.

Lorraine Belo-Cincochan, Wilcon Depot president and chief executive officer told analysts during a briefing that the company remains committed to its growth trajectory, having already opened three new branches as of March 2026.

The company’s target for the year includes seven large-format depots and one Do-It-Wilcon (DIW) store, a smaller format aimed at high-density areas.

Market analysts suggested that Wilcon’s scale provides a defensive moat against the supply chain disruptions that have plagued smaller competitors. Denise Joaquin, a research analyst at COL Financial, noted that management is seeing demand trends spill over from the previous year.

Same-store sales growth (SSSG) for the first quarter of 2026 is expected to outpace the figures recorded in the final quarter of 2025.

Joaquin observed that recent geopolitical tensions sparked a surge in advanced orders last month as customers and contractors moved to secure inventory ahead of potential price hikes. However, the outlook remains clouded by external factors.

The company cautioned that sustained inflation, driven largely by rising fuel costs, could dampen discretionary spending on home renovations and lead to project deferrals.

Financially, Wilcon is navigating a period of margin compression. The company reported a 3.3 percent decline in annual net income to ₱2.45 billion for the previous year, as rising operational expenses and tightening margins offset a 3.7 percent rise in net sales, which reached ₱35.44 billion.

The growth was driven almost entirely by new store openings, as comparable sales growth ended the year at a flat -0.3 percent.

Despite the annual dip, momentum appeared to shift in the final quarter. Net income for the three months ended December surged 41.3 percent year-on-year to ₱580 million, supported by ₱9.11 billion in sales.

Belo-Cincochan said the company has “recalibrated” its internal strategies, including store layouts and marketing plans, to reverse previous performance downturns.

While the core depot business remains the primary engine, accounting for 96.3 percent of revenue, the smaller DIW format showed more vigorous organic growth, with same-store sales rising 6.8 percent. Project-based sales, however, slumped 46.8 percent to ₱185 million, reflecting a broader slowdown in large-scale contract work.