Wilcon 2023 sales constrained by mature stores’ lackluster performance

Wilcon Depot, the Philippines’ top home improvement retailer, saw net sales inching up 3.1 per cent in 2023 as new stores took up the slack left by outlets that have been operating for more than a year. In a statement to the Philippine Stock Exchange, Wilcon disclosed that net sales for the year hit 34.6 bn Philippine pesos (PHP, 566.35 mio euros) after same store sales dipped 3.4 per cent. For the fourth quarter, net sales were 2.11 per cent lower, at PHP 8.66 bn.

“The softness of the market persisted through the fourth quarter, which led to a modest growth in our topline for the year, 100 [per cent] of which was contributed by the new stores,” said Lorraine Belo-Cincochan, President and CEO of Wilcon.  “In 2023, there was an apparent slowdown in home improvement spending not only here [in the Philippines] but globally as well.”

She noted that the weak showing of outlets that were more than a year old in 2023 came after a robust comparable sales rise of 14.2 per cent in 2022.

But she also said that the company, which opened nine stores last year to bring its total network to 90 by the end of 2023, has fast-tracked plans to operate 100 stores by this year from an original target of 2025. “We believe that we have to be in the best position to serve our market once home improvement spending rekindles,” the official said.

Of the ten that are set to open this year, eight will be large format Depot stores, while two will be under the format that is currently known as Home Essentials. The company has started rebranding its Home Essential outlets as “Do It Wilcon” stores this year.

Apart from this, the company also got approval to add the trade name “Bargain Center By Wilcon Depot”, legitimising the distribution channel, of which three have been operating since 2020.

Meanwhile, Wilcon also amended its articles of incorporation to reflect plans to start selling agricultural tools and equipment, pesticides and fertilisers.

This is on top of its current range of products which includes building materials, appliances, plumbing and sanitary wares, paints, housewares, hardware, tools, furniture, electrical, lighting, furnishing, tiles, and flooring.