Robinsons Retail ventures into motorcycle retailing

MANILA, Philippines — Robinsons Retail Holdings Inc. (RRHI) is stepping into higher gear as it expands into the motorcycle retailing business.

RRHI, through subsidiary Robinsons Supermarket Corp., has inked a share purchase agreement to acquire 100 percent of Premiumbikes Corp. from tycoon Lance Gokongwei for P146.4 million.

Gokongwei is chairman of Robinsons Supermarket and adviser to the board of RRHI.

The company said the acquisition, which is in line with its strategy to diversify revenue streams and expand into profitable retail formats, is subject to customary closing conditions, including regulatory clearance from the Philippine Competition Commission.

“This acquisition marks a key milestone for our company as we enter a new and fast-growing category that is also profitable,” RRHI president and CEO Stanley Co said.

“This move reflects our commitment to enhancing the retail experience and providing accessible, reliable and affordable products that meet the evolving needs of Filipino consumers,” he said.

Premiumbikes is a motorcycle retailer in the Philippines, currently operating 214 stores nationwide.

The company is well-positioned for integration into a retail operator like RRHI given its consistent profitability over the past few years.

For 2024, Premiumbikes’ sales zoomed by 15.2 percent year-on-year to P4.17 billion.

The acquisition will allow RRHI to enter the growing motorcycle market in the Philippines.

RRHI said rising demand for motorcycles points to a promising industry outlook, with the Philippine market remaining underpenetrated compared to countries like Indonesia, Vietnam and Thailand.

“The Philippines still has a low motorcycle penetration ratio compared to other Southeast Asian markets, which gives us a lot of room to grow,” Premiumbikes general manager Joselito Pojol said..

“We are excited to become part of the Robinsons Retail group and look forward to bringing our stores and services to more communities across the country,” he said.

RRHI is one of the country’s largest multi-format retailers, with an expansive network of food stores, drugstores, department stores, DIY stores and specialty stores.

As of end March, the company has 2,448 stores consisting of 760 food stores, 1,131 drugstores, 50 department stores, 225 DIY stores and 282 specialty stores. It also has 2,116 franchised stores of community drugstore chain TGP.

For this year, RRHI is aiming for 130 to 170 net store additions with estimated capital expenditures of P5 billion to P7 billion.