SPORTING GOODS retailer Quorum International, Inc. (Toby’s Sports) is expecting revenue growth of up to 20%, driven by athleisure wear and growing interest in sports.
Quorum Founder and Chairman Roberto S. Claudio, Sr. said the company is looking at a 15%-20% increase in revenues this year.
“The main driver is that since the pandemic, people have become more conscious of their health, so there is really an effort to engage in sports because it is the cheapest way to work out,” Mr. Claudio told reporters last week.
“Second is that because of the pandemic, which resulted in work-from-home arrangements, the attitude of people now is to dress down. So employees come into their offices wearing sneakers and jogging pants,” he added.
Mr. Claudio did not provide the company’s revenues for last year but noted that 2023 revenues have already exceeded the pre-pandemic level.
In line with the company’s revenue growth projections, it is also planning to open four to five new stores this year, valued between P5 million and P10 million, depending on the size of the stores.
“These will be located in new malls. Half will be in provinces, and the other half will be in Metro Manila,” he said.
“So yes, the retail business is still growing; in fact, we just recently opened stores in Cabanatuan and Tuguegarao,” he added.
So far, the company has 70 stores nationwide, divided across three formats: Toby’s Sports, Runnr, and Urban Athletics.
“Our Urban Athletics format is the fastest-growing because the young generation nowadays is not only looking at performance when buying shoes but is also looking for lifestyle shoes,” he said.
“But the store openings this year will be a mix of the three formats. Most probably, three will be Toby’s Sports outlets, and one will be an Urban Athletics outlet,” he added.
Despite the optimistic outlook for the company’s top line, Mr. Claudio said that retailers these days are being hit by inflation, the exchange rate, supply chain problems, the recent wage hike, and a shortage of manpower.
“The cost of doing business has also increased just as much as our revenues. So most retailers are really focusing on maintaining good cash flow so we can pay our employees and our payables,” he added. — Justine Irish D. Tabile
