RETAIL SPOTLIGHT
From mini to super :
Alfamart ’ s continuing story of growth and dedication
Alfamart , which is one of the leading minimart brands in Indonesia , started its operations in the country in June 2014 in Trece Martires , Cavite . Since then , the super minimart has rapidly expanded to various locations across Luzon , including Laguna , Batangas , Metro Manila , Pampanga , Bulacan and Nueva Ecija .
The Philippine Retailing Magazine interviewed its Chief Operations Officer Harvey Ong , who shared the minimart ’ s journey especially how it continues to grow in the face of the pandemic .
How was the experience in joining and leading Alfamart as its COO ?
I joined in November 2016 . The brand had only around 200 stores then , mostly located in Cavite . It was a risky career move , given my lack of retail operations experience . But I was excited by the vision and faith of the owners , and I shared their belief that the brand could succeed in the Philippines . I am truly grateful for the opportunity , and I remain excited for the future of this brand .
What do you think sets Alfamart apart from its competitors ?
When Alfamart started in the Philippines , we decided to focus on addressing the needs of the “ underserved ” market . These households reside far from a supermarket or grocery , and usually rely on public transportation . With the heavy traffic , this makes a shopping trip time-consuming and costly as they have to spend for gas or transportation . Unfortunately , their nearby options do not offer them a complete assortment of products and at times they are priced higher compared to bigger groceries .
We believe we have the right business model to win with this segment . As the first and only Super Minimart in the Philippines , Alfamart offers convenience , complete assortment , and everyday low prices on basic grocery needs . Our stores are accessible as they are located within walking distance or , at most , one tricycle away . Our accessibility is especially appreciated during calamities , particularly during the typhoon season and throughout this on-going pandemic .
What role did Alfamart play during the pandemic in its community and what adjustments did you have to make in terms of operations during the ECQ and moving forward the new normal ?
When the lockdown was imposed , grocery shopping became more complicated than it used to be . Neighborhood stores became a more popular destination for these errands as they are closer to home . We saw how more and more families relied on us for their daily food needs . This has encouraged us to continue with our expansion . Despite the many challenges , we opened over 250 new stores in 2020 . We support the sanitary and hygiene protocols set by the government to help contain the spread of the pandemic . We also provide PPEs for our frontline and backend staff .
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We had to work closely with suppliers , especially for items that were in high demand . We also had to ensure that the delivery of goods from our warehouses to our stores will be continuous and not be affected by quarantine guidelines . Since each LGU had its own protocols , we went down to the barangay level , so that we would not break any rules regarding curfews , checkpoints , personnel hygiene standards , and paperwork requirements .
Can you share with us more on what did Alfamart do to help its employees during the pandemic and share with us the Alfamart culture that gives motivation to your people to continue to serve the company and customers ?
We were overwhelmed and surprised that a lot of our employees persevered to find ways to report to work , especially in the first days of the ECQ . They have shown a great degree of dedication and resilience , which comes from a deep sense of purpose . They know and understand the need to continue serving our customers .
We did our best to make it easier for them to do their jobs . Some of our employees who had difficulty commuting were temporarily given access to free shuttle service until public transportation services resumed . We also re-assigned some of our store front liners so they can work closer to where they live and we are continuously reviewing employee assignments .
How do you see the convenience store / minimart growing in the coming months and years ? Do you think there will be major changes in operations , approaches in relation to the pandemic ?
The local convenience store segment has been expanding at a faster rate than other retail formats , yet remains underdeveloped compared to other Asian countries . There ’ s still a lot of room for growth . There may be a temporary slowdown given the slowdown of our economy and overall decline in consumer spending . Most investors will adopt a wait-and-see attitude . But I expect expansion to accelerate as consumer and business confidence return . In terms of operations , players will have to adjust to changes in customer needs , including cashless transaction and online shopping .
What value do you find in becoming a PRA member ?
We joined PRA because we are also an advocate of growing local businesses to world-class standards . By being part of PRA , we believe that we will be able to enhance the operations of Alfamart , as well as the local retail industry .
Retail Spotlight aims to share the success stories and insights of PRA members . Share your story with us ! If you have an inspiring story on how you started your business to serve as an inspiration to the retailing community , we ’ d love to publish them on the Philippine Retailing magazine . Email your pitch at communications @ philretailers . com / ebbs @ philretailers . com and let ’ s share beautiful , inspiring stories to the retailing community .