Allhome trims Q2 losses on better foot traffic

Philippine home improvement company AllHome Corp tempered its sales loss in the second quarter on improved footfall. The company disclosed sales of 3.026 bn Philippine pesos (PHP, approx. EUR 53.28 mio) in April to June 2022, down 3.4 per cent from the comparative period.

This is trimmed from the company’s 9.8 per cent sales tumble in the first quarter, when shoppers shied away from its stores due to an outbreak of the Omicron variant of the coronavirus. A fire that razed three AllHome outlets in Alabang district south of the capital contributed to the retailer’s weak showing in the period.

For the first half of the year, AllHome’s sales softened 6.8 per cent to PHP 6.265 bn despite the addition of seven stores between July 2021 and June 2022 – five of which went onstream between January and June 2022 – and the expansion of its net selling area to 304,000 sqm from 291,259 sqm.

Same store sales – computations for which excluded the razed stores – contracted 7.34 in the period, after expanding 30.5 per cent in the same semester last year.

Besides grappling with Covid effects and the loss of outlets, AllHome also had to contend with weak sales in the hard category over the past six months, the company reported.

Officials, however, note that shoppers have started spending again on optimism that things are returning to normal post-Covid.

Basket sizes of shoppers have gone up five per cent, “an indicator that our customers continue to be confident in their spending”, AllHome President and Chief Executive Officer Benjamarie Therese Serrano said.

She also said the company is on track with plans to operate 100 stores by 2026.

 - by Jennee Grace U Rubrico/ DIYInternational