Alfamart Philippines targets 3000 stores
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Indonesian c-store format Alfamart is making steady progress in the Philippines after local retail giant SM Group entered a joint venture.
Alfamart operates some 8500 convenience stores in Indonesia and now the brand is expanding into Philippines, where the c-store sector is still in its development stage.
SM Supermarkets president Joey C. Mendoza told the Philippine Star newspaper that at the end of 2014, his company had opened 22 Alfamart branches after the two companies partnered in July. The first store in Trece Martires in Cavite, near Manila.
Another eight have opened already this year.
Alfamart Philippines stores stock basic groceries, foods, medicines and convenience foods 24 hours a day.
SM expects strong growth during the next five years, believing critical mass for the chain is between 1000 and 3000 stores.
Alfamart Indonesia is providing SM Group with experience and advice on the format’s expansion, stocking and rollout.
Each store ranges from 150 sqm to 300 sqm in size and costs a maximum of P30 million (US$681,000) to open.
Questions & Answers
Q.When did Alfamart and SM Group begin their partnership in the Philippines?
When did Alfamart and SM Group begin their partnership in the Philippines?
The two companies partnered in July, and by the end of 2014, SM Group had already opened 22 Alfamart branches. Another eight stores have launched this year.
Q.What is the typical size and cost to open an Alfamart store in the Philippines?
What is the typical size and cost to open an Alfamart store in the Philippines?
Each Alfamart store ranges from 150 sqm to 300 sqm in size. The cost to open one is a maximum of P30 million, which is equivalent to US$681,000.
Q.What kind of products do Alfamart Philippines stores stock for customers?
What kind of products do Alfamart Philippines stores stock for customers?
Alfamart Philippines stores provide basic groceries, foods, medicines, and convenience foods. These items are available to customers 24 hours a day.
Q.How many Alfamart stores does the SM Group expect to open to achieve critical mass?
How many Alfamart stores does the SM Group expect to open to achieve critical mass?
SM Group believes that critical mass for the chain lies between 1000 and 3000 stores. They anticipate strong growth over the next five years to reach this target.