Philippine home improvement retailer AllHome saw a 16.5 per cent erosion in sales for the third quarter as leisure spending triggered by the removal of pandemic restrictions took up consumers' budget for house refurbishing. The company disclosed 2.840 bn Philippine pesos (PHP, EUR 47.63 mio) in sales for July to September, with comparable store sales falling 11.3 per cent.
"The 'revenge spending' phenomenon that marked the inevitable end of the pandemic has shifted to travel and leisure with the lowering of restrictions on these activities," company chief executive and the Philippines' top billionaire Manuel B. Villar, Jr. noted in a statement.
Strong typhoons that hit the country in August and September also led to lower foot traffic to AllHome stores, the company noted, adding that weak sales in the hard categories, first seen in the second quarter, continued to weigh on earnings.
AllHome has been registering quarterly sales losses since the start of the year. Year-to-date, the company has registered a 10-per cent fall in sales to PHP 9.10 bn. The company, however, remains optimistic that sales would improve, as the Christmas season - considered the peak period for Philippine retailers - approaches and construction activities resume.
The company ended September with 59 outlets, from 55 in the same period last year. The count could have been higher, but three of its stores were burned down last January. Company officials said that AllHome is on track to reach its target of opening 100 stores by 2026.