Rustan’s to Add 13 More Branches by End of 2014

RUSTAN’S Supercenters Inc. plans to add 13 more branches by the end of 2014, said Company President Bienvenido Tantoco.

Tantoco said the new stores will be situated in Makati City, Bonifacio Global City and other key cities in the country.

He said the company will focus on its current format of providing a grocery brand for each class segment rather than on expanding on other retail products. “For the moment we’re just really focused on the retail and really maximizing the growth potential before we really diversify into other fronts,” Tantoco said.

The company currently has around 20 branches under the Rustan’s Supermarket brand, and several other outlets for its Shopwise and Wellcome chains. He also said the industry continues to be healthy as consumer spending goes as fast as the country’s growth.

“We have a brand for affluent Filipinos. Shopwise and Wellcome are for the mass market. So it’s pretty much covered. All levels of housewives and working mothers. At the end of the day that’s what we’re focused on — the Filipino women,” Tantoco said.

Tantoco, however, observed that the tough competition from its peers is one of the main challenges of the company as Rustan’s has to keep up with Puregold chain, the SM Group and Robinsons, which are expanding their networks at a very fast pace.

He said the challenge is that the supply of retailing is increasing more than the growth of retailers. “What’s challenging is the supply of retailing is increasing more than the growth of retailers in the fast moving consumer goods [sector]. He added the retail sector is very competitive.

“The competition is going faster and the pie is growing,” Tantoco said.

 Source: Business Mirror

Image Credit: rustansfresh.com