Metro Gaisano chain mulls Visayas, Luzon expansion

The Metro Gaisano chain is now exploring plans to expand in other  parts of Visayas and Luzon as it has seen a growing retail market in the country.

“The retail market in the Philippines, specifically in Cebu is still growing, although it could have been better if the peso has not strengthened further against the dollar,” said Edward Gaisano, vice president of Vicsal Development Corporation, the operator of Metro Gaisano chain of department stores.

This is the plan of Metro gaisano despite earlier predictions by economists that the strong peso could put a negative pressure to the retail industry in the Philippines.  This is mainly because the purchasing power of the families of Overseas Filipino Workers will be most affected by the foreign exchange movement.

At this time, Gaisano said, the retail business is still experiencing good consumer traffic, especially for food.

Thus, he said plans for expansion are being considered, including the opening of one Metro Gaisano store in Angeles City in Luzon.

In Cebu, or in the Visayas, Gaisano said the company is discussing possibilities of partnership with the AyalaMalls, for its planned mall expansions in the Visayas.

“We are talking with Ayala in another partnership,” said Gaisano, however, he did not elaborate details on the negotiation.

Already, the company has done partnership projects with the Ayala Malls, being the anchor store of the Ayala Center Cebu, and the Market!Market! shopping mall in Manila.

It has established two Metro Gaisano stores Luzon located in Lucena and Legaspi.

In 2006, Metro Gaisano, which is a retail arm of Vicsal Development Corporation, reported a 10 percent growth, attributing the increasing OFW remittances, and the growth of BPO investments that fueled the good shape of retail industry.

Economists Cayetano Paderanga and Rolando Avante warned that a possible slowdown in the retail sector is expected, while value of OFWs salaries has decreased because of the strengthening peso.

The strong peso, although an indication of a good economic landscape in the Philippines in the macro level, could also trigger a slight fall down in the consumer demand—especially to the dollar-earning consumer based.

Although, the huge dollar-earner market is now getting smaller value of their dollar to the peso, Gaisano said the growth is sustained, as the employment rate has improved. —Ehda M. Dagooc

He mentioned the growing number of workers employed in the Business Process Outsourcing (BPO) sector, which has good purchasing power.  This market has offset the weakening of the purchasing power of the OFW-financed families.

Aside from retail, the Vicsal Development Corporation is also into other businesses, like banking and finance, pawnshop, real estate development.—Ehda M. Dago-oc/NLQ