SSI Group aims to open more than 900 retail stores in 2015
SSI Group, Inc., the largest specialty retailer in the Philippines, is targeting to open more than 200 stores until 2015 in line with its anticipated entry to the country’s capital market, which would bring the total number of its branch network to more than 900 stores.
The group, which includes Stores Specialists, Inc., retails 103 international brands in the country including Hermès, Prada, Gucci, Burberry, Salvatore Ferragamo, Lacoste, Michael Kors, Kate Spade, Gap,
Old Navy, Zara, Stradivarius, Bershka, Aeropostale, Samsonite, Nine West, Payless Shoe Source, Beauty Bar, Marks and Spencer, Pottery Barn and TWG, among others.
As of end of June 2014, the group already has 655 retail locations in 68 malls throughout the country.
In its prospectus submitted to the Securities and Exchange Commission (SEC), SSI Group said it is targeting to open as much as 188 stores this year, 67 of which were already opened as of June 30, and another up to 115 new stores in 2015 alone.
If all the stores the company intends to open by 2015 were built as scheduled, the company would have as much as 958 retail locations in the country in less than two years.
“The average size of these new stores is higher than the current average size of existing stores and we expect the new store openings to increase our total gross selling area by approximately 40,000 square meters to 47,000 square meters in 2014,” SSI Group told SEC.
The company also assured that while the exact opening date for its new stores depends on “certain factors” that it does not control, it is confident that the remaining new stores will be opened as the firm already signed lease agreements or entered into discussion with landlord on the new stores.
Merely a week ago, SSI Group has sought for the approval of the SEC for its plan to raise as much as P12.4 billion through an initial public offering (IPO) in the Philippine Stock Exchange (PSE) in October.
With proceeds of as much as P12.4 billion, the company’s maiden share sale would involve selling as much as 864.2 million worth of common shares at P12.50 apiece to the public, with an overallotment option of P129.6 million common shares.
SSI Group allotted P3 billion or the 37.2 percent of this P12.4 billion to its specialty retailing or new store development.
“We intend to capitalize on our strong brand portfolio and market leadership in the specialty retailing industry by further increasing our market penetration through an aggressive yet systematic store expansion strategy,” the company further said.
The offer period for the shares is scheduled from October 23 to 29, while the official listing date at the PSE is set on November 5, depending when the company would get the approval of the SEC and PSE.