WAREHOUSE CLUBS IN THE

PHILIPPINES
Euromonitor International
January 2019
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Channel Growth Driven by Two Chains .................................................................................... 1
Warehouse Club Operators Recognise the Shift Towards Smaller Basket Sizes ..................... 1
Competitive Landscape ................................................................................................................ 1
S&r Enters the Online Channel Through Honestbee ................................................................ 1
Landers Superstore Opens An In-house Drugstore .................................................................. 1
Channel Data ............................................................................................................................... 2
Table 1 Warehouse Clubs: Value Sales, Outlets and Selling Space 2013-2018 ...... 2
Table 2 Warehouse Clubs: Value Sales, Outlets and Selling Space: % Growth
2013-2018 .................................................................................................... 2
Table 3 Warehouse Clubs GBO Company Shares: % Value 2014-2018 .................. 2
Table 4 Warehouse Clubs GBN Brand Shares: % Value 2015-2018 ........................ 2
Table 5 Warehouse Clubs LBN Brand Shares: Outlets 2015-2018........................... 3
Table 6 Warehouse Clubs LBN Brand Shares: Selling Space 2015-2018 ................ 3
Table 7 Warehouse Clubs Forecasts: Value Sales, Outlets and Selling Space
2018-2023 .................................................................................................... 3
Table 8 Warehouse Clubs Forecasts: Value Sales, Outlets and Selling Space:
% Growth 2018-2023 ................................................................................... 3

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WAREHOUSE CLUBS IN THE

PHILIPPINES
HEADLINES
 In 2018 warehouse clubs registers current value growth of 28% to reach sales of PHP39.7
billion
 S&R and Landers both focus on expansion in 2018
 Over the forecast period warehouse clubs is expected to post a current value CAGR of 15%
(11% at constant 2018 prices) to reach sales of PHP78.8 billion in 2023

PROSPECTS

Channel Growth Driven by Two Chains

The two chains present in the channel, S&R and Landers, both opened two new outlets in
2018. S&R Membership Shopping opened stores in Cabanatuan, a city in North Luzon, and
Paranaque in south Metro Manila. The pioneer of warehouse clubs in the Philippines, S&R
announced that it will open five more stores across the country in the coming years. As part of
its promotional activities, S&R opens its stores to everybody, even non-members, for a limited
number of days. Lander’s Superstore, on the other hand, opened its fourth and fifth branches at
Alabang and ArcoVia City in Pasig City, respectively. These outlets are located in the
Megaworld township development. Megaworld is a real estate developer in the country and
Landers has forged a partnership with it. Landers Superstore promises its members more
benefits, such as free haircuts, subsidised fuel and ongoing price promotions.

Warehouse Club Operators Recognise the Shift Towards Smaller

Basket Sizes
Landers Superstore is deviating from the original warehouse club model as it also sells items
by the unit, like a normal supermarket. Landers has observed that its customers appreciate this
option as it enables them to try out different brands and products. Moreover, it caters for those
who require smaller pack sizes, such as families living in condominiums with limited storage
space.

COMPETITIVE LANDSCAPE

S&r Enters the Online Channel Through Honestbee

S&R Membership Club is now offering online sales thanks to a partnership with honestbee.
This service has also been made available to non-members, thus providing an opportunity for
S&R to widen its customer base.

Landers Superstore Opens An In-house Drugstore

Landers Superstore has added an in-house drugstore to its product offering. Products at the
Capital Care Pharmacy will be available to Landers Superstore members at discounted prices of
up to 25%, depending on their overall spend. Capital Care is not aiming to compete with other

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drugstore chains in the Philippines as it is exclusive to Landers’ members. Landers Superstore

is simply seeking to offer its customers a one-stop shopping experience.

CHANNEL DATA
Table 1 Warehouse Clubs: Value Sales, Outlets and Selling Space 2013-2018

2013 2014 2015 2016 2017 2018

Value sales PHP million 12,460.0 15,700.0 17,820.0 24,933.3 31,123.2 39,723.7
Outlets 8.0 9.0 10.0 14.0 17.0 21.0
Selling Space '000 sq m 37.1 41.6 45.0 78.0 96.9 127.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 2 Warehouse Clubs: Value Sales, Outlets and Selling Space: % Growth 2013-
2018

% growth
2017/18 2013-18 CAGR 2013/18 Total

Value sales PHP million 27.6 26.1 218.8

Outlets 23.5 21.3 162.5
Selling Space '000 sq m 31.1 27.9 242.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 3 Warehouse Clubs GBO Company Shares: % Value 2014-2018

% retail value rsp excl sales tax

Company 2014 2015 2016 2017 2018

Puregold Price Club Inc 100.0 100.0 86.8 83.1 76.2

Southeast Asia Retail Inc - - 13.2 16.9 23.8
PSMT Phils Inc - - - - -
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 4 Warehouse Clubs GBN Brand Shares: % Value 2015-2018

% retail value rsp excl sales tax

Brand Company (GBO) 2015 2016 2017 2018

S&R Membership Puregold Price Club Inc 100.0 86.8 83.1 76.2
Shopping
Landers Superstore Southeast Asia Retail Inc - 13.2 16.9 23.8
S&R Membership PSMT Phils Inc - - - -
Shopping
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

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Table 5 Warehouse Clubs LBN Brand Shares: Outlets 2015-2018

sites/outlets
Brand (GBO) Company (NBO) 2015 2016 2017 2018

S&R Membership Puregold Price Club Inc 10 12 14 16

Shopping
Landers Superstore Southeast Asia Retail Inc - 2 3 5
S&R Membership PSMT Phils Inc - - - -
Shopping
Total Total 10 14 17 21
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 6 Warehouse Clubs LBN Brand Shares: Selling Space 2015-2018

selling space '000 sq m

Brand (GBO) Company (NBO) 2015 2016 2017 2018

S&R Membership Puregold Price Club Inc 45.0 62.0 72.9 83.1
Shopping
Landers Superstore Southeast Asia Retail Inc - 16.0 24.0 44.0
S&R Membership PSMT Phils Inc - - - -
Shopping
Total Total 45.0 78.0 96.9 127.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 7 Warehouse Clubs Forecasts: Value Sales, Outlets and Selling Space 2018-
2023

2018 2019 2020 2021 2022 2023

Value sales PHP million 39,723.7 47,041.7 52,819.2 57,809.3 62,774.2 67,675.5
Outlets 21.0 24.0 27.0 29.0 31.0 33.0
Selling Space '000 sq m 127.1 153.4 174.6 193.2 211.9 230.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms

Table 8 Warehouse Clubs Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2018-2023

% growth
2018/19 2018-23 CAGR 2018/23 Total

Value sales PHP million 18.4 11.2 70.4

Outlets 14.3 9.5 57.1
Selling Space '000 sq m 20.7 12.7 81.4
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms

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