July 24, 2019 | 12:05 am [ bworldonline.com ]
ALL HOME CORP. is planning to open 19 new stores this year, including six under the AllBuilders format. — COMPANY HANDOUT
VILLAR-LED All Home Corp. plans to roll out a new store format catering to the construction and housing market this year, as well as an e-commerce platform in a bid to reach a wider customer base.
In a preliminary prospectus on its website, the home improvement supplies retailer said it will unveil six AllBuilders stores in the second half of 2019. This is part of the 19 new stores it scheduled to open for the period.
“The AllBuilders store format, with a focus on contractors and builders, offers a more extensive selection of hardware, tiles and sanitary wares, and construction materials,” the company said.
The company plans to build the AllBuilders stores in areas outside Mega Manila, with the first six to be located in Vibal Dasmariñas, Cavite; Gapan, Nueva Ecija; San Ildefonso, Bulacan; Koronadal and General Santos City in South Cotabato; and Tagum in Davao del Norte.
All the stores will cover 4,410 square meters (sq.m.) in net leasable space, except for the Cavite branch which will have 7,530 sq.m. The stores cost about P42-72 million each, excluding the initial inventory.
All Home expects the growth of construction activities in the region to boost the performance of this new format, banking on bulk orders and high transaction values of contractors and builders.
The company currently has three store formats, namely large mall-based, large free-standing, and small specialty store. It has 18 large mall-based stores, which accounted for 78.5% of revenues during the first quarter of 2019.
It operates three large free-standing stores, contributing 12.4% of revenues, and three specialty stores that generated 2.1% of revenues in the same period.
Aside from its brick and mortar stores, All Home is also looking to introduce an e-commerce platform where customers can view their product offerings.
“We believe that establishing our own online sales channel will offer greater convenience to our customers, allowing them to view and purchase products, which would, in turn, complement our physical store network where our customers can see and touch our products and interact with our onsite staff,” the company said.
All Home has recently filed an application with the Securities and Exchange Commission to raise P20.7 billion in an initial public offering. If approved, the company’s shares are set to be listed at the Philippine Stock Exchange on Oct. 1 under the ticker “HOME.”
The company plans to use proceeds of the share sale for its expansion, which includes the construction of 38 new stores by 2020. It currently has 25 stores with a net selling space of 196,327 sq.m. By the end of its expansion in 2020, it will have an additional 256,615 sq.m. in net selling space. — Arra B. Francia
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