Ayala, Thai partner bring Makro back to the PH
Thailand-based grocery chain Makro is coming back to the Philippines after nearly two decades, with the Ayala group and its Thai partner taking charge.
This time, Makro will have modern facilities that are no longer exclusive to members.
Ayala Corp. subsidiary ACX Holdings Corp. on Wednesday signed a partnership deal with Thai firm Makro ROH Co. Ltd. (MROH) to launch a new entity, M&Co Corp.
The latter will operate Makro stores in the Philippines. The first store will reportedly open at Ayala Malls Cloverleaf in Quezon City.
ACX will own an equity interest of 49.9 percent in M&Co., while MROH will hold 50.1 percent. MROH is a subsidiary of CP Axtra, the main operator of Makro and Lotus’s in Asia.
“We are excited to partner with CP Axtra to bring Makro back to the Philippines,” Mark Uy, Ayala head of corporate strategy and business development, said in a statement. “Together, we seek to build on CP Axtra’s proven success in delivering quality products at more affordable prices through the Makro format.”
Uy was referring to the operator of Makro, itself part of the Thai conglomerate Charoen Pokphand (CP) Group.
This marks the return of the warehouse shopping brand that once dotted several key areas across the Philippines.
Makro debuted in the Philippines in 1996 when the SM and Ayala groups jointly invested in the brand.
Back then, its stores were literally warehouse-style and operated without air conditioning. Access was likewise exclusive to members.
Ayala sold its stake to SM by 2004, but the latter eventually converted Makro stores to either SM Hypermarket or SM Savemore stores. By 2009, Makro disappeared from the Philippine map.
Dynamic market
In bringing Makro back after 16 years, CP Axtra said the Philippines was one of the most dynamic and fast-growing markets in Southeast Asia.
“Through this partnership, CP Axtra’s expertise in wholesale and retail management is combined with Ayala Corp., a trusted local partner with strong market presence, established customer base and extensive land and mall development expertise,” said Tanit Chearavanont, group chief wholesale business officer at CP Axtra.
Makro will emerge as the new player in an industry dominated by S&R and Landers, both of which have established a strong presence across the country.
The reentry of Makro also marks another key milestone for Ayala, which has recently been keen on growing its retail footprint.
Last year, the county’s oldest conglomerate—through its partnership with global lifestyle brand Kmart Australia—brought Asia’s first Anko store in Glorietta 2 in Makati City.
Anko has since opened two more stores—one in Alabang Town Center and another in TriNoma in Quezon City.
Ayala is currently pursuing a P13-billion renovation and reinvention plan for four major malls—TriNoma in Quezon City, Glorietta and Greenbelt in Makati City and Ayala Center in Cebu City—to accommodate growing demand for modern retail facilities.
