Cebu-based retailer Metro Retail Stores Group Inc. posted a net loss of P449.6 million in 2020, a reversal of the P775.6-million net income recorded in 2019.
Metro Retail attributed the loss to the pandemic-driven 15-percent decrease in net sales to P31.3 billion in 2020 from P36.8 billion in 2019. Total food retail business increased 1.1 percent, but the total general merchandise business declined 45.7 percent over the same period last year.
The company cited the temporary closure of department stores in March 2020. While the stores were gradually re-opened, the segment continued to face customer traffic constraints as community quarantine levels were still in effect and consumers prioritized the purchase of essential goods.
Metro Retail closed unprofitable department store operations, preparing for a better consolidation for the future. Blended same stores sales fell 19.3 percent over the same period last year, brought about by the decline in sales of the general merchandise business.