Tuesday, June 24, 2014
Robinsons Retail Holdings Inc (RRHI) has announced plans to buy the controlling stake in Visayas-based A.M Builders’ Depot.
This is according to Robina Gokongwei-Pe, Robinsons Retail's president and chief operating officer, who says this acquisition, places the company in a unique position, giving it a strong presence in both DIY hardware and builders’ hardware retail formats.
“I am pleased with our partnership with the founders of A.M. Builders' Depot. The acquisition will be a good addition to our retail portfolio as it will serve another segment of the fast growing retail market of the country.”
In 1990, A.M. Builders began operations selling tiles, bathroom fixtures, roofing materials and lumber as their core products for home finishing. Currently, they operate 17 stores, with about 35 000 square meters in gross floor area. With branches in Bacolod, Cebu, Dumaguete, Iloilo and other key cities in the Visayas region, this acquisition looks to provide greater synergy with Robinsons’ existing stores like Handyman Do it Best and True Value by gaining access to Robinsons' range of home improvement products. Meanwhile, Robinsons now has a stake in the big box hardware retail format, which services residential and building contractors.
President of A.M. Builders, Arsenio Rafael, says the synergy between the two brands ensures the success of the partnership.
He says the possibilities for this new partnership are endless as they improve and expand their product offerings.
Last year, sales from Robinsons Retail's DIY stores jumped 14.5 percent off a six percent growth in same store sales. The DIY segment alone accounted for 10.5 percent of the group's consolidated net sales, with their supermarket segment accounting for nearly half, and their department stars contributing 17.7 percent.