Home improvement retailer Wilcon Depot Inc. disclosed Monday is looking at quarterly profits of P600 million as it sees sales returning to pre-pandemic level this year despite the opening of IKEA’s first store in the country.
Wilcon chief finance officer and senior vice president Rosemarie Bosch-Ong said in a news briefing the savings from reduced corporate income tax and the further easing of mobility restrictions would enable the company to maintain quarterly profits at P600 million.
She said the company would also continue its aggressive expansion as it remains on track to have 100 stores by 2025. The company recently launched its online platform to reach more customers and boost revenues.
Meanwhile, the company’s top executive said they were “not too worried” about the upcoming opening of the first store of Swedish home furnishing company IKEA in the Philippines.
Wilcon president and chief executive Lorraine Belo-Cincochan said the company would not be competing directly against IKEA because of their different product offerings.
IKEA, which is set to open its world’s largest store in Pasay City before the end of the year, sells space-saving furniture and Scandinavian-inspired home furnishings. Belo-Cincochan said Wilcon’s core products are primarily home and construction supplies, including tiles and sanitary wares and appliances.
“We are also pushing our hard lines and in-house brands. We have different products to offer. We are not that worried by IKEA,” Belo-Cincochan said.
More than 50 percent of Wilcon’s sales are from hardware lines such as tiles and sanitary wares while sales from home furnishings account for 8 percent of total sales, she said.
She said WIlcon’s another advantage is its wider geographic reach. Wilcon is set to open nine stores to end the year with a network of 72 stores.
The company’s expansion plans are geared towards northern and southern Luzon which continue to experience strong sales.