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Robinson’s

Retail Inc.
Management
Report
Our team

Ma. Kaye Sandra Pamela Escamillas Lady Francheska


Galeon Mapaye
Table of contents

01 Executive Analysis /
04
Summary Findings

02 Introduction, 05 Conclusion/
Aims and Recommendations
Objectives

06 Appendix
03 Literature
Review
Executive
Summary
Introduction
Background of the Company
Robinsons Retail Holdings, Inc. was incorporated on February 4, 2002. The primary
purpose of the Company and its subsidiaries is to engage in the business of trading goods,
commodities and merchandise of any kind. The Company was listed at the Philippine Stock
Exchange on November 11, 2013. Robinsons Retail Holdings, Inc. (RRHI) is one of the leading
multi-format retail groups in the Philippines. With over 40 years of retail experience, it
possesses a deep understanding of Philippine consumers and enjoys market leading positions
across its major business segments. Since the opening of its first Robinsons Department Store
in Metro Manila in 1980, RRHI has successfully expanded into five business segments, entering
into the supermarket business in 1985, the Do-It-Yourself (DIY) business in 1994, the
convenience store and specialty store businesses in 2000, and the drugstore business in 2012.
It also launched Robinsons Townville, a chain of community malls in 2015, which are located in
residential areas to bring its products closer and its services more convenient to its customers.
Background of the Company
RRHI operates one of the broadest ranges of retail formats of any retail
group in the Philippines and, accordingly, is well-positioned to capture emerging
consumer markets and take advantage of the continuing macroeconomic growth
in the Philippines, particularly the increase in disposable income and higher
consumption of the broad middle-income segment, its key target market.

RRHI operates its supermarkets, department stores, consumer electronics and


appliances stores, big box hardware stores, and community malls namely
Robinsons Supermarket, the Marketplace, Shopwise, Robinsons Easymart,
Robinsons Department Store, Robinsons Appliances, Robinsons Builders, and
Robinsons Townville. The company’s other store formats are under well-known
international brands, namely Handyman Do it Best, True Value, Toys “R” Us,
Ministop, Daiso Japan;Pet Lovers Centre and No Brand, and beauty brands
Benefit, Shiseido, and Elizabeth Arden. RRHI also operates trusted domestic
brands, such as Savers Appliances, Southstar Drug, Rose Pharmacy, TGP and
mass merchandise store Super50.
Objectives
● To captivate the omnichannel consumer
○ From the disruption of Covid-19, the most relevant is the affirmation that technology
and digitalization is set to shape and reshape the Philippine retail industry. The
strategy remains, where we build the foundations of omnichannel. We will open more
physical stores to fulfill their purpose of bringing access to quality products and
services in areas where it is best model to serve customers and communities.
● Intuitive digital investment
○ A digital awaits retail and technology heavily informs the long-term vision for the
company. But alongside the digital, they also believe in the sustainable, where
Robinsons Retail operates with integrity as a company that takes into the account its
impact to society.
● Sustainability beyond Covid 19
○ Part of their commitment to sustainability that focuses on human capital. Prioritizing
the safety of the employees and sustain effort throughout its duration and under
normal operating conditions.
Literature Review
Managing the efficacy of e-commerce platforms in the event of a pandemic

Given the devastating effects of the Covid-19 pandemic on business operations, this study
proposes a systematic approach for examining the impact of perceived effectiveness of
e-commerce platforms (PEEP) on consumer perceptions of economic benefits in forecasting
long-term consumption. The conceptual model for this study was based on the uses and
gratification theory, with the addition of a pandemic dread border condition. This study's
main research method is a quantitative survey and analysis.
The contribution of this study is its examination of how economic benefit mediates the PEEP
and sustainable consumption relationship which is dependable on the levels of pandemic
fear. Implications for managers and theory are also discussed.
Literature Review
Perceived effectiveness of e-commerce platforms (PEEP)

E-commerce literature has well-documented that advances in Internet technology allow firms to directly
sell products to consumers through e-commerce platforms (Fan et al., 2020), resulting in increased sales
(Lee et al., 2018). However, consumers cannot physically examine products when buying online, which leads
to product uncertainty. For example, security risk (e.g., personal information leakage) has been found to
have strong negative effects on online transactions (Hubert et al., 2017). This is important because today's
e-commerce platforms offer various online products and services from electronic devices to high-tech
products, health and beauty to food, and fashion to sport and travel with a large volume of financial
transactions
When consumers use e-commerce platforms to book a hotel room or flight ticket with online payments,
they must provide their personal and bank account information which needs to be protected from leakage
and fault behaviors or consumers will probably face potential risks and dangers, otherwise.Therefore, the
author conceptualizes PEEP as an online customer's perception that e-commerce platforms have safeguard
mechanisms in place to protect online transactions from potential risks in both regular and pandemic times
Literature Review

Uses of Gratification Theory

Uses and gratification theory (UGT) refers to an influential sociological paradigm that explains which
social and psychology needs motivate consumers to select particular platforms (Li et al., 2018).
Advances in Internet technologies have enabled e-commerce platforms to transform retail and
logistics operations that create more economic benefits as reductions of costs and delays, triggering
the roles of UGT in explaining usage motivations (Luo et al., 2011). For example, consumers use
e-commerce platforms to interact and purchase products from retailers while retailers can provide
consumers with various online shopping opportunities (Wagner et al., 2020). In this regard, UGT
fundamentally helps to examine what role consumer behavior and motivation plays in consumers'
online interactions with firms (Huang et al., 2014). If firms can effectively fulfill consumer needs with
products via online platforms, consumers will be more willing to continue to interact with
firms.Therefore, this study employs UGT to explore the interactive linkages of PEEP, consumers'
perceived economic benefits, pandemic fear, and sustainable consumption.
Analysis / Findings
Analysis / Findings
Digitalization
In the midst of pandemic, one important lesson that retailers learned is that
digitalization is a must to survive and thrive in the industry. The company is currently taking
significant actions to turn its business around in the online space given the lower foot traffic
in malls brought about by the stay-at-home protocols. In 2015, there were about 44 million
active Internet users in the Philippines. As of 2020, over 73 million Filipino users are active
online. Though the number of online users–and presumably the number of e-commerce
customers–increased, the Philippines has one of the lowest percentages of e-commerce
users in Southeast Asia. This is largely because of how significant the mall culture is to
Filipinos, as evidenced by our many sprawling malls in Metro Manila. However, all that has
changed because of the pandemic. With malls temporarily closed, Filipinos turned to online
businesses. A study showed that online shoppers in the Philippines grew by 57% in the first
half of 2020, the highest in the Southeast Asian region.
Analysis / Findings
Selling via third party platforms
Robinsons Retail’s focus on going digital includes utilizing other big third party platforms,
such as Lazada, Shopee, and GrabMart. It also developed its own mobile app called
gorobinsons.ph, which had six brands by the end of 2020. Three of those brands are
supermarkets, namely Robinsons Supermarket, Shopwise, and The Marketplace, with the latter
being a result of the company’s acquisition of Rustan Supercenters in 2019. This third party
platforms also remained an important component in RRHI’s efforts to widen its channels to
reach customers better. In addition, RRHI provided a click/call and collect/delivery as another
integrated access point for customers to reach its products and services. Investments in
e-commerce platforms such as BeautyMNL and Growsari had also made significant
contributions to strengthening e-commerce traction.
SWOT ANALYSIS
OPPORTUNITIES THREATS

STRENGTHS Strength Opportunities (SO) Strength Threats (ST)


Strategies Strategies

Leveraging brand recognition Investing into R&D to thwart


in new segments industry disruptors.

WEAKNESSES Weakness Opportunities (WO) Weaknesses Threats (WT)


Strategies Strategies

Investing into customer oriented Get out of the business and


services and supply chain focus on growth areas
Recommendation
Bridging Gaps through Technology

We relied on implementing business continuity programs and strategic ways to take


advantage of opportunities in technology. One of the most significant lessons of 2020 in
Robinsons Retail was the confirmation that e-commerce was tremendously relevant in
addressing the needs of our customers today.Catalyzed by limited consumer mobility,
Robinsons Retail’s e-commerce sales increased exponentially growing
three times from 2019 and contributed 1.1% of total sales in 2020. Together with our
participation in third party marketplaces, our brands established virtual Viber
communities for click and collect services to ensure that we have alternative means to
connect with our customers.
Recommendation

The growth of our e-commerce share was driven by a major strategic


step that we pursued in the year, which was the launch of our own e-
commerce platforms. In March and August, respectively, Southstar
Drug and Robinsons Appliances launched their own e- commerce
platforms through their company websites, southstardrug.com.ph and
robinsons appliances.com.ph.
Recommendation
Our Response to COVID

Prior to the disruption of COVID-19, the indispensable role of e-commerce was already
clear for the future of retail. The launches and initiatives we undertook in 2020 were
manifestations of a long-term strategy that had its beginnings from our strategic investments
in e-commerce platforms such Growsari and BeautyMNL, and participation in third party
marketplaces, which we started to engage as early as 2015. Today, we continue to deepen
our presence online retail, continuously learning from our past experiences and coupled
with our focus on data and robust loyalty programs.
Conclusion
Data Analytics:
The use of business, consumer behavior and supplier analyses across different platforms allow for
data driven decision making for management.

Technology Investments:
Our investments fulfill our igital Transformation nitiatives with the use of Cloud, Machine Learning,
Automation and Mobile Technologies.

Expanded Retail Platform:


With our investments, we create new digital and traditional platforms and integrate them to improve
performance and increase efficiencies.

Merchandising:
Our digital investments further enrich our omnichannel business model with new channels and
purchase paths for our formats’ expansive merchandise portfolio.
Our digitalization thrusts are strategically linked with data analytics.
Robinsons Retail has a 40% stake in Data Analytics Ventures, Inc.
(DAVI), our loyalty and data unit joint venture with JG Summit Holdings,
Inc., which oversees the Robinsons Rewards Loyalty program and
Cebu Pacific's GetGo program. Together, the programs have a
combined network of 8.9 million members.
APPENDICES: BIBLIOGRAPHY OF ROBINSONS
RETAIL HOLDINGS INCORPORATED
Robinsons Retail Holdings Inc.
https://www.robinsonsretailholdings.com.ph/investor-relations/

Lim, A. (2021). Shopping with rewards further boosted this company’s digitalization initiatives, launching a 10%
Uniform ROA, not 4%. Philippine Market News Letter
https://www.valens-research.com/philippine-markets-newsletter/shopping-with-rewards-further-boosted-this-companys-di
gitalization-initiatives-launching-a-10-uniform-roa-not-4/

Robinsons Retail Holdings, Inc. is in the business of delighting shoppers, day by day.
https://www.robinsonsretailholdings.com.ph/

Tran, L. (2020). Managing the effectiveness of e-commerce platforms in a pandemic.


https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7475027/
APPENDICES: BIBLIOGRAPHY OF ROBINSONS
RETAIL HOLDINGS INCORPORATED
Thank you !

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