Trade and Industry Secretary Manuel Roxas III said yesterday that the SM Group and Hutchison plan to build up to 250 drug, health and beauty stores in the Philippines over the next few years.
He said the two firms were expected to file their plans with the Board of Investments (BOI) within the next 10 days, with approval expected within a month.
Watson’s is well-known in Hong Kong and Singapore.
The Philippines enacted a retail trade liberalization law last year, paving the way for foreign firms to set up wholly or majority-owned retail operations in the country.
"This is a testament to the strength of our domestic economy and will be a boon SM, to local manufacturers as, under the liberalization act, such retail store chains are mandated to source 30 percent of their goods locally," Roxas said.
In turn, Philippine goods will gain access to Hutchison’s network of over 1,000 Watson’s retail stores around the world, including over 550 personal care stores in Asia, and over 220 similar outlets in the United Kingdom.
At a cost of $1 million per store, Hutchison and SM are expected to invest around $250 million for the planned stores.
Each store would have a personnel complement of 20 to 25 people apart from the personnel for backroom operations for commissary and logistical needs.
"The entry of HWL into the Philippine retail trade sector will undoubtedly give Filipino consumers greater value for their money and provide impetus for greater efficiencies in retail services and supply chain operations," Roxas said.
"We are particularly happy that the Watson’s outlet have dedicated counters for pharmaceutical products which will offer medicines at affordable prices."