The Ayala Group is stepping up its efforts to enter the local retail sector as it aims to get a bigger share of Filipino consumer spending.
“We recognize that the consumer segment is the largest industry in the country that Ayala does not currently directly participate in, and that there is significant opportunity to disrupt and enhance the current industry landscape, and also that consumer businesses are highly complementary to our current portfolio”, Ayala Corp. president and chief executive Cezar Consing said during the company’s annual stockholders meeting.
Ayala introduced Anko, a value retail brand from Australia last year. It is seen as part of the company’s wider strategy to change how Filipinos shop.
Given the positive results from Anko, Ayala group is now planning to put up four new stores before the end the end of the year.
“Filipinos often pay high prices for very low-quality goods, so we believe that by capitalizing on our current ecosystem, we can change the local retail and consumer landscape and bring new and better value concepts to Filipino consumers,” Consing said.
Ayala Group currently has investments in real estate, banking, telecommunications, healthcare, manufacturing and power generation.
Ayala Corp. managing director Mark Robert Uy said the group plans to bring in more retail concepts that will give local consumers better choices and better value for money.
“So in the case of Anko which we brought in here, we saw a concept that was quite game changing in Australia, They really making really good quality, well designed products. They are also selling it at the price point that is affordable even to the middle class or even the lower class Filipinos,” Uy said.
Uy said that in bringing in new concept stores to the domestic market, Ayala should address “a pain point in the market”.
“What we’re trying to do is we’re trying to offer great value to customers and will continue to be on the lookout for brands that are relevant to the Filipino customers.”
The strategy to venture into retail is also linked to Ayala’s efforts to improve its mall business.
“The malls are Ayala Malls team has announced a very ambitious plan, you know, to modernize and uplift our more portfolio as well as potentially to grow. So this strategy really goes hand in hand with that,” Uy said.
