The country’s oldest conglomerate and Thai retail giant CP AXTRA, operator of Makro and Lotus’s stores, signed definitive agreements on Sept. 24 to form a new venture, M&Co Corp.
“The company will focus on operating Makro stores in the Philippines, offering a modern shopping experience with a wide range of food and non-food products at accessible prices for both consumers and small business operators,” Ayala said in a stock exchange filing on Wednesday.
What happened before
Ayala exited Makro in 2004 when it sold its 28 percent stake in Pilipinas Makro, leaving the Sy family and Dutch partner SHV Holdings in control.
SM Investments eventually folded the Makro stores into its retail arm and raised its stake to 60 percent.
By then, the Makro brand was already fading, with stores “performing poorly,” according to an SM filing in 2009. The group soon converted the outlets into their more popular SM retail formats.
Ayala’s management view
“We are excited to partner with CP AXTRA to bring Makro back to the Philippines. Together, we seek to build on CP AXTRA’s proven success in delivering quality products at more affordable prices through the Makro format,” said Mark Uy, head of corporate strategy and business development at Ayala.
“This partnership is in line with Ayala’s strategy of working with world-class companies to expand consumer choices, raise retail standards, and help Filipinos thrive,” he added.
New retail warehouse player
CP AXTRA is a leading wholesaler and retailer, operating Makro and Lotus’s across 10 countries. The firm, listed on The Stock Exchange of Thailand, has more than 2,700 stores and over 30 years of retail experience.
“The Philippines represents 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 Corporation, 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, CP AXTRA.
“This new partnership aligns with CP AXTRA’s strategy to expand our regional footprint, while positioning the company for sustainable long-term growth and value creation,” he added.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
