Retailer's Challenge: Adopting Innovation While Maintaining Stability

During the Q3 2025 earnings call, the CEO of Robinsons Retail Holdings Inc (PHS:RRHI), referred to as Unidentified_1, recalled the most unhelpful business advice he ever received: "Don't rock the boat." This remark highlighted the difficulties of steering through an unpredictable retail environment, where innovation must be balanced with steady operations. Despite uneven results, the CEO stressed that taking decisive actions—like growing private-label lines and embracing digital transformation—remains essential for enduring success, as detailed in the

.

The retail conglomerate, headquartered in the Philippines, posted a 4.8% increase in net sales year-to-date, reaching PHP149.3 billion, mainly fueled by robust growth in its food and drugstore businesses. Conversely, the department store segment experienced an 11.7% drop in sales, which was linked to evolving consumer preferences and heightened competition from e-commerce platforms. Net income fell sharply by 60% to PHP3.1 billion, impacted by the lack of a one-off gain seen last year and higher interest costs.

Unidentified_1 stood by the company’s strategic direction, pointing out that simply maintaining the status quo in a flat market can result in stagnation. "We've had to make difficult decisions—such as closing underperforming stores and investing in new technologies—to remain relevant," he commented during the call. The drugstore unit achieved double-digit growth, while the food segment benefited from 3-5% same-store sales growth (SSSG) and larger average purchases, according to the call.

The Q&A portion offered more details on the company’s financial approach. Addressing questions about the PHP10.8 billion loan used to acquire DPI shares, Unidentified_1 emphasized the importance of managing liabilities while keeping options open for future growth. October’s SSSG figures showed continued strength, with food and drugstore divisions outperforming the overall market. The CEO also mentioned a goal to increase gross margin by 30 basis points in 2025, supported by private-label and imported goods, as summarized in

.

Nonetheless, obstacles remain. The DIY segment’s EBITDA dropped due to increased operational expenses, and royalty income decreased by 6% compared to the previous year, partly because of timing in revenue recognition. Unidentified_1 admitted these challenges but reaffirmed the company’s commitment to "enhancing margins and building customer loyalty in a fragmented industry."

The main takeaways from the earnings call reflect a common dilemma in retail: balancing caution with the need for innovation. For Robinsons Retail Holdings, adopting a "rock the boat" mindset has involved both gradual improvements and bold changes. With a combined SSSG target of 2-4% for 2025, the company’s ability to weigh prudence against strategic risks will be key to thriving in a fiercely competitive market, as the recap observed.