Wilcon sales slips 2.5 pct in q1 on reined in same-store sales

Wilcon, the Philippines’ top home improvement retailing chain, saw sales dip 2.5 per cent in the first quarter as an increase in new store sales could not offset a slowdown in the take of mature stores.

The company told the Philippine bourse that net sales for the January to March 2024 period slid to 8.311 bn Philippine pesos (EUR 134,84 mio.) owing a a 7.3 per cent fall in comparable sales. This is despite a 4.9 per cent increase in sales for stores that are less than a year old.

In a statement, Wilcon President Lorraine Belo-Cincochan said that an extended holiday in March, toppled with a high base, also contributed to the weak showing of the company at the start of the year. “This quarter’s performance was driven primarily by the considerable year-on-year drop in March sales because of the Easter holidays falling in March this year and exacerbated by the fact that March last year was our highest grossing month,” she said.

The company disclosed that depots -- Wilcon’s big box format with an average net selling area of 9,210 m² -- was the biggest contributor, at 95.9 per cent to the total. Meanwhile the smaller formats -- currently under the Home Essentials and Do-It-Wilcon brands -- contributed 37.2 per cent.

Comparable sales from depots fell 7.9 per cent, Wilcon said. It added that for the smaller format, same store sales fell 10 per cent.

Belo-Cincochan expressed optimism that Wilcon would do better in the succeeding months, as she noted that sales for April “reversed the decline in March”.

“We are hoping that our improving average daily sales will be sustained from here on,”she added.

For the first quarter, Wilcon opened three stores -- one depot and two Do-It-Wilcon outlets -- bringing the total number of outlets around the country to 93. The company plans to have 100 branches by the end of this year.

 - by Jennee Grace U Rubrico