Retail chain sees potential growth in provincial areas

CEBU, Philippines - Cebu-based retail chain Prince Warehouse Club Inc. has identified countryside areas in the Visayas and Mindanao as one of its primary growth drivers in the next few years, as provincial economies have started to grow.

Prince Warehouse Club president Robert announced this positioning following its plan to open its second department store branch in Leyte, particularly Maasin City, Southern Leyte.

The company will spend at least P50 million to open up a warehouse-concept department store in Maasin City this year, after it invested P100 million for the opening of its Baybay, Leyte commercial complex last year.

“Everybody is coming to Cebu, so we are also finding other areas for growth outside of Cebu. Retail trade has continued to post promising prospects, although competition is fiercer now,” said Go, who is also the director of Philippine Retail Authority (PRA-Cebu).

According to Go, the company has serious plans to expand in other provincial areas in the visayas and Mindanao, however concrete planning will soon be announced, “we are still looking at more opportunities for expansion outside of Cebu.”

At present, there are a total of eight Prince Warehouse Club branches, largely concentrated in the Cebu province and in Metro Cebu areas.

Starting last year, with the opening of its one-hectare Prince BayBay commercial complex, the company started its out-of-Cebu expansion.

According to Go, the opening of its Maasin City outlet, will take advantage of the province’s emerging economic growth, as its main product—copra, is now on its highest buying price in history.

“People now in Southern Leyte have money to spend,” he said.

Aside from its active plan, to open more branches and commercial complex facilities bringing the Prince Warehouse brand in the provincial areas, Go said the company is also expanding its penetration to the micro-entrepreneurs particularly the Sari-Sari store owners.

Because of this, the company recently established the a micro-finance firm to support its network of Sari-Sari store owners in the province, as well as neighboring areas in Cebu, and soon in the entire Southern Philippine region.

Through the R&J7 Credit Corporation, Go said Sari-Sari owners will be saved from being victimized by the loan sharks who are charging high interest for credit.

He said that there is a need to help the Sari-Sari Store industry, as these sector is mostly not being attended to, or owners only depend their capitalization sources, through 5/6 loan facility, which is not helping their businesses.

Through the physical expansion of Prince Warehouse Club in other areas in the Southern Philippines, it could also support its thrust to reach out Sari-Sari store owners in Visayas and Mindanao.

The R&J 7 Credit Corporation’s strategy is to provide a credit line to member sari-sari store, through its network of membership in Prince Warehouse Club, via providing goods equivalent to the total credit amount approved to the borrower.

According to Go, the establishment of the credit corporation, is part of the Prince Warehouse Club’s corporate social responsibility (CSR) program to help this almost “unseen” sector in the economy.

He said Sari-Sari store phenomenon although it has been part of the Filipino culture, need to be given attention to, especially for the financial institutions. While most of them owners, cannot comply with needed requirements by the banks in order to get financial help.

Instead of giving cash, Go said the amount approved to be loaned to the borrower will be converted to goods. This may be worth P3,000 of P5,000 depends on the approved amount to the borrower.

Prince Warehouse Club has started to establish its network of Sari-Sari store in the entire Cebu, and other areas in neighbouring provinces, “ to provide them the venture to learn, be exposed and know the latest in the small retail trade.” (FREEMAN)