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After 180 stores opened this year, more are planned in 2019.
Indonesian mini-market operator, Alfamart, proposes to open 200 new stores in the Philippines in 2019. Alfamart currently has more than 500 stores in the country, located mainly in residential areas. The new planned stores will bring Alfamart’s Philippine store network to more than 700 by end of 2019.
The Philippine and Indonesian markets share similaries, which work to Alfamart’s advantage. Both have young populations and expanding middle classes. In both markets, shopper prefer to buy small packaged goods frequently rather than filling large baskets and weekly grocery carts.
The mini-mart sector in the Philippines is seen as an untapped sector with little competition. Unlike convenience stores, Alfamart also carries fresh and frozen food. Its product range is more extensive than that of a typical convenience store (see photo below):
Source: IGD Research
Alfamart’s risk in the Philippines is also mitigated by its majority stakeholder, SM Retail. SM operates 1729 stores nationwide in the Philippines. Alfamart will benefit from its large business network and high brand awareness.
Alfamart sees that it has more potential in the Philippines than other Southeast Asian markets, such as Thailand and Vietnam.
Keep up-to-date with the latest retail developments from Asia.