RRHI exits No Brand business as it adapts to consumer trends

NO BRAND PHILIPPINES FACEBOOK PAGE

ROBINSONS Retail Holdings, Inc. (RRHI) said it will close its 11 No Brand standalone stores nationwide by end-June 2026, citing shifting consumer preferences and a move to align its formats with customer demand.

“The decision reflects evolving consumer preferences and how customers are choosing to shop across our retail formats,” RRHI President and Chief Executive Officer Stanley C. Co said in a disclosure on Wednesday.

“Our focus remains on meeting customer needs by providing relevant assortments in the most appropriate formats. We thank Emart for the partnership over the past several years,” he added.

RRHI said the closures are not expected to materially affect its financial performance, as No Brand accounts for about 0.2% of annual net sales and a minimal share of total assets.

“No Brand’s 11 stores are immaterial relative to RRHI’s network of more than 2,700 company-owned stores — including 157 Robinsons Supermarket, 159 Robinsons Easymart, 38 The Marketplace, 16 Shopwise, and 415 Uncle John’s under its food segment — and over 2,100 franchised TGP branches, as of Dec. 31, 2025,” the company said.

No Brand entered the Philippine market in 2019 through a master franchise agreement between RRHI and South Korea’s Emart, allowing the company to operate dedicated stores nationwide.

Analysts said the move reflects a strategic shift toward focusing on more established and profitable formats.

“The No Brand shut down is a move to double down on higher margin formats that should yield RRHI the best returns over time, while also trimming formats that may not be part of their long-term format priorities,” AP Securities, Inc. Equity Research Analyst Shawn Ray R. Atienza said in a Viber message.

In a separate Viber message, F. Yap Securities investment analyst Marky Carunungan said the closure forms part of a broader portfolio rationalization strategy.

“The pivot toward larger, more established formats such as supermarkets is better aligned with local consumption behavior and provides a more resilient earnings base. It also signals a shift toward prioritizing scale, efficiency, and returns over experimentation,” he added.

“The group has been candid about the concept’s limited traction in the Philippine market, and that its performance fell short of expectations. From an impact standpoint, No Brand represents only a small portion of the overall portfolio, and as such, we do not expect this development to materially affect RRHI,” Unicapital Securities Equity Research Analyst Jeri R. Alfonso said in a separate Viber message.

She added that the US-Iran conflict may have also contributed to the decision, as it affects global supply chains and raises logistics and input costs, while contributing to inflation.

“This explains RRHI’s shift toward supermarket formats, which cater to basic needs. While No Brand offers food items, its focus on snacks and confectionery makes it more discretionary, and thus more vulnerable to volume declines as households prioritize meals over indulgences.”

RRHI shares closed unchanged at P39.25 apiece on Wednesday. — Alexandria Grace C. Magno