AllDay Supermarkets, owned and operated by AllDay Marts, Inc., has been dubbed as a leading player in the mid-premium market segment in the country, according to London-based independent analytics and consulting firm GlobalData plc.
“AllDay is a leading player in the mid-premium supermarket segment,” GlobalData said in its Philippines Grocery Industry Report.
According to GlobalData, 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,” the firm added.
GlobalData 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 Compound Annual Market Growth (CAGR) of 62.5 percent from 2015 to 2020.
AllDay 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 that innovative solutions, such as AllDay’s pioneering Personal Shopper Service—where customers send in their grocery lists via Viber with a personal shopper doing the work for them – are also helping to fuel growth because this strategy gives customers multiple options to buy online.
Online grocery expected to be a ₱50.6 billion market by 2025
With the rise of online grocery shopping, GlobalData said online grocery spending grew significantly (+153.1%) in 2020 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.
To be able to rise to the challenge of the times, AllDay has also adapted to online platforms to cater to its customers. It also tapped its sister company, GetAll, and other couriers to deliver its goods. Curbside pick-up at AllDay’s 33 store locations are also set to make it more convenient to shoppers to get their goods.
The analytics firm noted further that while online penetration will remain relatively low in the Philippines, the online grocery market is expected to grow at a CAGR of 32.5 percent between 2020 and 2025 to become a ₱50.6 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.
AllDay Supermarkets are strategically located in prime shopping districts and densely populated areas, which allows the stores to serve consumers in key locations in Mega Manila and other provinces.
As of June 30, 2021, 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 sqm.
“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’s expansion strategy is anchored on the Villar Group’s property development plans—a store in each and every Vista Land community across the country—from Ilocos Norte in the North to Cotabato in the Southern Philippines.
AllDay is awaiting approval by regulatory agencies for its IPO this year, where it plans to sell up to 6.857 billion common shares with an over-allotment option for another 685.7 million shares at a price of up to P0.80/share.
AllDay Marts, Inc. (AllDay) has filed an application for an initial public offering with the Securities and Exchange Commission (SEC) and The Philippine Stock Exchange, Inc. (PSE) in August 2021. A preliminary prospectus for the initial public offering of AllDay Marts, Inc. may be obtained from https://corporate.allday.com.ph/prospectus/, which is subject to completion or amendment without notice. The preliminary prospectus also contains the information required to be stated in any notice, circular, advertisement, letter or other forms of communication that will be published or transmitted to any person after a registration statement has been filed under Rule 8.3.1 of the 2015 Implementing Rules and Regulations of the Securities Regulation Code of the Philippines and which information is incorporated by reference in this communication.
A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, BUT HAS NOT YET BECOME EFFECTIVE. THESE SECURITIES MAY NOT BE SOLD NOR OFFERS TO BUY THEM BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT IS RENDERED EFFECTIVE. THIS COMMUNICATION SHALL NOT CONSTITUTE AN OFFER TO SELL OR BE CONSIDERED A SOLICITATION TO BUY.