AllDay Supermarket, the grocery chain owned by Villar-led AllDay Marts Inc., is the country’s leading player in the mid-premium market segment, according to London-based independent analytics and consulting firm GlobalData plc.
In its Philippines Grocery Industry Report, GlobalData said the supermarkets under this category mostly cater to the rising middle class because they offer a wide variety of products and brands at competitive prices.
“Most of these players also offer regular deals and promotions both instore and online, helping them to appeal to a wider spectrum of shoppers,” it said.
It defines mid-premium supermarkets as those which place more emphasis on quality and service. While competitively priced, the services include a solid selection of premium items.
At the other end of the spectrum are value and value-mid cover players which put more focus on price and less of an emphasis on service and quality. Players in-between these two, with a balanced proposition and fairly standard range in terms of price and quality, are in the mid-market, GlobalData said.
While three major players corner the supermarket segment, GlobalData sees significant scope for AllDay and other players to grow into an expanding market as they open more stores.
According to the GlobalData report, AllDay is the fastest-growing supermarket operator in the Philippines, with a compounded annual market growth of 62.5 percent from 2015 to 2020.
AllDay said it hopes to further boost its position in the supermarket segment as it plans to triple the number of its branches to 100 by 2026.
GlobalData notes the company’s innovative solutions, such as its AllDay service in which customers send in their grocery lists via Viber with a personal shopper doing the work for them. Such effort helps fuel growth because this strategy gives customers multiple options to buy online, it said.
GlobalData said online grocery spending grew 153 percent last year due to the impact of Covid-19, with numerous grocers partnering with third-party delivery providers to expand their delivery capacities.
“The approach of using their own web or app platform plus a partnership with marketplaces helps supermarkets reach more customers and fuels the growth of online,” it said.
The analytics firm noted that while online penetration will remain relatively low in the Philippines, the online grocery market is expected to grow at a compound annual growth rate (CAGR) of 32.5 percent between 2020 and 2025 to become a P50.6 billion market. This follows the CAGR of 62.3 percent recorded between 2015 and 2020 when the then nascent market expanded from a very low base.
As of end-June, AllDay has a portfolio of 33 stores nationwide, with 24 stores in Mega Manila, six in Luzon outside Mega Manila, and three in Visayas, with an aggregate net selling space of approximately 55,881 square meters.
“We plan to continue to increase our number of stores in 2021 to up to 36 stores,” AllDay said in a statement. It intends to have up to 45 stores by the end of 2022, and 100 stores by the end of 2026.
AllDay is awaiting the approval of regulatory agencies for its initial public offering later this year, in which it plans to sell up to 6.85 billion common shares with an over-allotment option for another 685.7 million shares at a price of up to P0.80 per share.