Wilcon maintains expansion plans despite headwinds

Home improvement and construction supply retailer Wilcon Depot Inc. is projecting modest single-digit growth in 2025, citing continued sluggish demand amid economic headwinds.

At a press briefing, Wilcon Chief Operating Officer Rosemarie Ong expressed cautious optimism for the remainder of the year, targeting 7 to 8 percent sales growth in the second half to help lift full-year performance.

“We’re looking at a single-digit (growth). If we could get, positive 7 or even positive 8 percent in the second half, that should pull up the whole year,” Ong said, noting that the latter half of the year typically outperforms the first.

To support its expansion, Wilcon has earmarked %u20B13.2 billion in capital expenditures for 2025. Of this, %u20B12.2 billion is allocated for new stores and warehouses. The company has already spent %u20B1652 million in the first quarter.

Other portions of the budget include %u20B1568 million for renovations and repairs, %u20B1327 million for store and transportation equipment, and %u20B1137 million for IT infrastructure improvements.

Despite previously announcing plans to open eight to 10 stores this year, Wilcon now expects to launch six to eight outlets. Company officials emphasized a more measured approach following the milestone of opening its 100th store.

“We’re more chill. Even if there’s a delay, we’re OK with it as long as we stay within budget,” said Mary Jean Alger, Wilcon Vice President for Investor Relations.

The company also plans to implement cost-cutting initiatives, particularly by trimming fixed costs and optimizing store sizes and inventory.

For the first quarter of 2025, Wilcon reported a 27.5 percent decline in net income to %u20B1536 million, while net sales inched up by 1.2 percent to %u20B18.41 billion. Despite the challenging start, executives remain confident in the company’s long-term fundamentals.

Wilcon recently opened its 103rd store and is preparing to inaugurate its 104th, as it shifts toward a more deliberate and sustainable growth strategy.