Retailers SSI Group Inc. and Metro Retail Stores Group Inc. booked steep losses in the first half as the lockdown implemented by the government to curb the spread of the new coronavirus disrupted store operations.
SSI of the Tantoco Group said in a disclosure to the stock exchange it ended the first half with a net loss of P476 million, a reversal of the P346-million profit it booked in the same period last year.
SSI said sales in the first six months declined by 50 percent to P5 billion, as most its stores were closed from March 17 to May 15, in line with government directives designed to control the spread of COVID 19.
The group reopened most of its stores on June 1 and implemented strict safety measures in shops and restaurants to ensure the health and safety of customers and employees. It said that since the reopening, the group saw steady weekly sales growth.
The group also posted significant growth in its e-commerce business, with sales rising by 375 percent in the first half of 2020.
“The group has reduced capex for 2020 as we focus on managing our business prudently during these unprecedented times. I am optimistic with respect to the steady increases we have seen in brick and mortar sales and that we are ready to compete and operate under the “new normal,” SSI president Anthony Huang said.
SSI will launch in September an online marketplace to carry a range of brands from the group’s portfolio and other brands and products to complement the marketplace’s online offerings.
Meanwhile, Cebu-based retailer Metro Retail of the Gaisano Group registered a net loss of P84.7 million in the first semester, a turnaround from the P376-million profit in the same period last year.
The reversal in bottom line was driven by an 8.4-percent decrease in revenue because of the disruption in operations caused by the COVID-19 outbreak and the changes in new accounting standards on leases.
Metro retail president and chief operating officer Manuel Alberto said that while general merchandise sales declined by 46.5 percent following the closure of department stores, the food retail business jumped by 11.3 percent on increased demand and sustained supermarket operations.
