Retail in Asia


adidas and Starbucks retail spaces to debut in Shell Philippines

In order to boost revenues beyond fuel, Pilipinas Shell Petroleum Corp, the publicly listed Philippine arm of Shell Plc, plans to build retail shops and restaurants in a third of its petrol stations by 2025.

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Shell Plc’s CEO, Lorelie Quiambao Osial stated in an interview with Bloomberg that this could result in non-fuel retail earnings growing by at least 15 percent annually and creating a revenue stream that provides a quarter of sales. By 2025, Shell plans to have 550 of its 1,300 to 1,400 stations in the Philippines equipped with convenience stores, restaurants, and retail outlets such as Jollibee, McDonald’s, Starbucks and adidas.

Upon closing its refinery in 2020 and switching to importing fuel from abroad, Pilipinas Shell stepped up its efforts to grow non-fuel revenue as well as aggressively expanding its gas stations. With the closure of the refinery, earnings became more predictable and resources were freed up to invest in projects that yielded higher returns, such as building up petrol stations.

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Approximately 3 billion pesos (USD 52.3 million) to 4 billion pesos are spent annually on the five-year strategy, which started in 2021. By 2025, Pilipinas Shell will have up to 1,400 outlets and five mid-range oil terminals, with 40 to 60 new stations planned annually. In addition to rising income and petroleum demand in the Philippines, the plan anticipates that the country’s “low motorization rate” will catch up with other markets.