SSI expects ‘better’ Q4, brings in gelato brand
Tantoco-led SSI Group Inc. sees a positive momentum in the historically busy fourth quarter for the luxury retail sector amid “muted” global consumption and the exit of Philippine offshore gaming operators (Pogos), especially after adding a new high-end chocolate brand to its portfolio.
SSI president and CEO Anton Huang said in an interview on Monday that poor weather in the third quarter slightly impacted the retail sector as a whole, although demand was “definitely stronger than the first half.”
“For the fourth quarter, we’re cautiously optimistic but the reality is consumption [and] spending are somewhat muted,” Huang said.
“But that’s a global phenomenon … The good thing about retailers in the Philippines is we’ve always been forced to focus on the domestic customers,” the CEO noted, adding that the government’s ban on Pogos had no significant impact on their business.
According to Huang, Pogo customers preferred “certain brands,” and that they “made up a big portion of sales.” He did not disclose the exact figure.
“But for the majority of the brands, that wasn’t the case,” he said.
SSI, the local operator of several premium international clothing brands such as Lacoste, Gap, Marks and Spencer, Zara and Old Navy, saw its earnings in the first nine months of the year slip by 17.3 percent to P1.26 billion.
This was due to a 16.2-percent decline in sales of footwear, accessories and luggage, its financial report showed.
Still, Huang pointed out that the retail sector may pick up in the fourth quarter, when spending is historically high due to the Christmas rush.
In 2023, earnings in the fourth quarter accounted for nearly half of SSI’s full-year net income.
Venchi
At the same time, SSI officially opened today, Nov. 19, the country’s first Venchi Chocogelateria store in Central Square Mall in Bonifacio Global City.
The Italian premium chocolate and gelato maker is also set to open another branch at The Podium in Ortigas Center next month.
“There’s already a very, very strong customer following for Venchi [in the Philippines], Filipinos who shop at Venchi in other parts of the region, like Hong Kong,” Huang said, adding that Venchi products in the Philippines were around 15 percent cheaper than that of other branches in Southeast Asia.
A 78-gram bar of Venchi chocolate retails for around P700.
Apart from the Philippines and Hong Kong, Venchi also has branches in Singapore, Malaysia and Indonesia.
Venchi Asia-Pacific CEO Marco Galimberti said they planned to enter the Thailand market by 2026.
Asked whether they sought to open more branches in the Philippines, Galimberti said they wanted to focus on quality development before expanding to other locations.
“We need to make the business stable and running … [SSI] is always on the lookout for good locations, so this is why we go for premium malls and spaces,” he noted.
SSI has brought several international food and beverage brands to the Philippines, including Shake Shack, HeyBo and SaladStop!
