July 02, 2014

60 foreign retail brands looking for local partners

The chairman emeritus of the Philippine Franchise Association was quoted by various news agencies as saying about 60 international retail brands will be participating in the Franchise Asia Philippines 2014 in search for local partners.

These companies come from Malaysia, South Korea, UK and the US and cover a wide range of food and fashion products. The PFA cited the country’s large population and improving economy as the key attraction for these foreign retailers.

Our take: The entry of more foreign brands can spur further competition in the retail industry and provide opportunities to expand the brand portfolio of top retail companies like SM Retail, Robinsons Retail Holdings, Inc (RRHI) and Stores Specialists which has strong ties with Ayala Land Inc (ALI).

Property firms with extensive mall operations should enjoy higher demand for mall or retail space with the entry of new retail players. These should include SM Prime Holdings Inc (SMPH), ALI, Robinsons Land Corp (RLC) and Megaworld Corp.– WealthSec