Alfamart Philippines ramps up expansion

Date : 19 December 2018

After 180 stores opened this year, more are planned in 2019.

Continue to make inroads

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.

Similarities between the two countries

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.

Untapped sector

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.

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