METRO Retail Stores Group, Inc. (MRSGI) said it is well-positioned for growth in 2020, citing the strong economy and domestic retail demand, after a fire at a Cebu store brought down its 2018 results.

“We are in an auspicious position to boost our earnings this year as we continue to seize opportunities given the vibrance of the country’s retail sector and overall economic strength, as well as robust domestic demand,” Frank S. Gaisano, the chairman and chief executive officer, told the stock exchange.

The Cebu-based retailer concluded its annual shareholder meeting in Mandani Bay, Mandaue City, Cebu.

Manuel Luis C. Alberto, MRSGI president and chief operating officer, said the company hopes to complete in the second half of 2019 the final phase of the redevelopment of its stores in Ayala Center, Cebu.

Mr. Alberto said the opening of more Metro stores is a top priority. The company will also develop a mixed-use project incorporating another Metro Department Store and Supermarket in Samar.

He said amid the challenges encountered in the past year, the company expanded its presence in emerging business hubs in Luzon and the Visayas, with groundbreaking for Super Metro Hypermarket in Leyte and the opening of Metro Department Store and Supermarket in Ayala Feliz, Pasig and Ayala Capitol, Bacolod.

“The company’s strength is rooted in our enduring drive to make our customers happy and yield returns for our shareholders. This is also what empowers us through trying times. We recognize the role of our strategic alliances in expanding our store network,”

“As we set our sights on higher goals, we forge ahead with the theme we have set forth for 2019 — growth through operational excellence and quality customer service. We are fully committed to deliver our value proposition,” he added.

The retailer capped 2018 with a net profit of P965.4 million, down 1.2%. But it said the decline constituted a strong performance despite a fire that damaged a department store and supermarket in Ayala Center Cebu in January 2018.

Same-store sales growth was 5.1%, while the company recorded a 110 basis-point improvement in same-store gross profit margins. Total sales stood at P33.05 billion, down 5.6%, largely because of the fire.

Mr. Gaisano attributed the company’s positive performance to its “agile business strategies and improvements in inventory and margin productivity, price competitiveness and merchandise assortment.”

On Friday, MRSGI was unchanged at P3.40. — Victor V. Saulon

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