Rustan's

Last updated

Rustan's
Type Corporation
Industry Retail
Founded1952 in Manila, Philippines
FounderBienvenido Tantoco
Gliceria Tantoco
Headquarters Metro Manila and Cebu, Philippines
Products Clothing, footwear, bedding, furniture, jewelry, cosmetics, housewares, children's wear, toys, supermarket
Number of employees
30,000 (nationwide) (2009)
Parent Rustan Commercial Corporation
Website rustans.com

Rustan's is a Philippine chain of upmarket department stores owned by the Rustan Group of Companies (RGOC). Rustan's Department Store is the flagship brand of the Rustan Group of Companies and has five major branches, three boutiques and an online shopping store rustans.com. Rustan's Department Store is considered the Philippines most prestigious retailer, carrying many of the world's most famous upscale or luxury brands names, among them, Cartier, Mikimoto, Tiffany, Ermenegildo Zegna, Nina Ricci, Alfred Dunhill, Sonia Rykiel, and Estee Lauder. Rustan's was the first in the Philippine retailer to introduce a customer loyalty program, "Frequent Shoppers Plus" and a Wedding Registry.

Contents

The brand was also applied to a chain of supermarkets (Rustan's Supermarkets, 1970–2020) founded by the Rustan Group in 1970 which it owned until its divestment in 2017. [1]

History

Rustan's Department Store was established in 1952 by spouses, Bienvenido Tantoco, Sr. and Gliceria Rustia Tantoco. [2] [3] Rustan's is a portmanteau of the couple's respective family names. Following a trip by the couple to Europe, Rustan's Department Store began as a set of goods displayed for sale in the couple's living room. Eventually, the Tantocos expanded the business to a small gift shop located along San Marcelino Street, Manila. In the following decade, it grew into a full-fledged department store. [4]

By the 1960s, Rustan's successfully introduced several international and haute couture brands to the Philippines for the first time including Yves Saint Laurent and Christian Dior. By 1970, the flagship store opened in Makati and the building became well-known for its blue external tile work for many decades and was sometimes referred to as the "Jewel box." [5] More brands followed including Lacoste, Lanvin, Gucci, and others.

To facilitate this growth, Rustan Marketing Corporation was established in 1964 to introduce brands to the store and also undertake nationwide distribution of renowned brands. Today, this continues with a diversified portfolio of brands within beauty and personal care, apparel, watches, luggage, footwear, accessories, home, and lifestyle products. [6]

Rustan's Department Store at Ayala Center Cebu Rustan's Department Store (10-05-2022).jpg
Rustan's Department Store at Ayala Center Cebu

By 1973, it opened a second major store in Cubao, Quezon City and a third at Mango Square, Cebu City in 1981. During the 1990s, Rustan's grew to include a large store in upscale Shangri-la Plaza in Mandaluyong and another branch in Ayala Alabang, Muntinlupa and at Ayala Center Cebu in Cebu City. [7]

In parallel, the Tantoco family's reputation as leading retailers continued to grow as the couple's six children became involved in the daily business. In 1987, Stores Specialists Inc began operations to focus on the Philippine franchises for many of the world's top brands. The brand portfolio consists of over 100 brands and over 600 stores; brands include Marks & Spencer, TWG Tea, The Gap, Old Navy, Banana Republic, Zara, Tory Burch, and Calvin Klein. Stores Specialists Inc. (SSI) is a publicly-listed company in the Philippine Stock Exchange. [8] [9]

Other major businesses within the Rustan Group of Companies (RGOC) include Rustan Coffee which was one of the earliest operators of Starbucks outside the United States, Royal Duty Free Stores, ADORA – a luxury boutique department store, Santa Elena Realty Inc., and The Rustia-Tantoco Foundation.

The Tantoco couple's six children have been involved in different areas of the business over the years. Today, the chairman is the eldest daughter Zenaida R. Tantoco, while the president is the eldest grandson Bienvenido V. Tantoco III. [10]

Rustan's Supermarket

A Shopwise hypermarket at Lancaster New City, Imus, Cavite SHOPWISE LANCASTER.jpg
A Shopwise hypermarket at Lancaster New City, Imus, Cavite

Rustan's Supermarkets was established in 1970 by the Rustan Group. [11] In 1998, Shopwise hypermarket was launched under Rustan Supercenters, Inc. (RSI). [12] In 2006, the Rustan's supermarket chain (Rustan Supermarket, Inc.) was consolidated under RSI. [13]

In 2012, the Dairy Farm Group acquired 50% interest in RSI. [14] By 2017, the Dairy Farm Group acquired full ownership of RSI. [15] [16]

On March 23, 2018, the Dairy Farm Group sold RSI to Robinsons Retail Holdings, Inc. (RRHI) through a stock swap. After the sale, the Dairy Farm Group owned 18.25% and 1.75% of RRHI (20.00% in total) through Mulgrave Corporation and GCH Investments respectively. [17] [18] At the time of the sale, RSI operated Rustan's Supermarket, Marketplace by Rustan's, Shopwise, Shopwise Express and Wellcome (Philippines). [19]

On April 11, 2018, Zenaida R. Tantoco, chairperson and CEO of the Rustan Group of Companies clarified that the Rustan's trademark and trade name was "never a part of the business transaction between RRHI and Dairy Farm Group, legally or otherwise." Tantoco stated that Rustan Commercial Corporation (RCC) is the sole owner of the Rustan's trademark and trade name and the use by any third party requires the written consent of RCC. The statement clarified that after the buy-in of the Dairy Farm Group into RSI in 2012, RSI was granted use of the Rustan's trademark and trade name for a "limited period of five years commencing from the year 2012 and was terminated upon our written notice to the Dairy Farm Group on April 3, 2018." [20] [21] The following day, RRHI issued a statement acknowledging the trademark license arrangement between RCC and RSI and should the trademark license of Rustan's be "validly terminated by RCC" such stores would be rebranded with "other premium brand alternatives." [22]

The sale of RSI to RRHI was approved by the Philippine Competition Commission on August 17, 2018 [23] and the transaction was completed on November 21, 2018. [24] The rebranding of the Rustan's supermarket chain (Rustan's Supermarket and The Marketplace by Rustan's) to The Marketplace was completed by 2020 with some branches converted to Robinsons Supermarkets.[ citation needed ]

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References

  1. ↑ "Robinsons Retail Acquires Rustan's Supermarkets, Shopwise in Php18-B Share-Swap Deal". Entrepreneur Philippines. March 23, 2018. Retrieved March 23, 2018.
  2. ↑ Lee Flores, Wilson (April 3, 2011). "Success secrets of Rustan's empire patriarch, Bienvenido Tantoco Sr". The Philippine Star. Retrieved March 24, 2018.
  3. ↑ "Rustan' launches online shopping site | BusinessWorld". BusinessWorld. May 6, 2019. Retrieved June 15, 2019.
  4. ↑ "From Paco to the apex of luxury retail: Rustan's marks 65th year". Philippine Daily Inquirer. September 16, 2017. Retrieved May 1, 2019.
  5. ↑ Lazatin, Hannah (October 4, 2017). "7 Rustan's Milestones That Changed the Country's Retail Industry". Townandcountry.ph. Retrieved May 1, 2019.
  6. ↑ "About Us". Rustans.com. Retrieved May 1, 2019.
  7. ↑ de la Torre, AJ (October 8, 2009). "Rustan's to expand in Cebu". Philstar.com. The Freeman - Cebu Business. Retrieved May 7, 2023.
  8. ↑ "About Us". Rustans.com. Retrieved May 1, 2019.
  9. ↑ Mananquil, Millet (October 19, 2008). "A homecoming at Rustan's". Philstar.com. Retrieved May 7, 2023.
  10. ↑ "Tantoco Search Result". Philippine Tatler. Retrieved May 1, 2019.
  11. ↑ "Who We Are". Rustan's Fresh website. Retrieved March 24, 2018.
  12. ↑ "About Us". Shopwise website. Retrieved April 15, 2018.
  13. ↑ "About Rustan". Rustan Super Centers Inc. and Royal Duty free shops Inc. Employee Credit Cooperative website. Retrieved April 15, 2018.
  14. ↑ Dumlao, Doris (May 8, 2012). "Tantocos sell half of Rustan Supercenters' stake". Philippine Daily Inquirer. Retrieved March 24, 2018.
  15. ↑ Mercurio, Richmond (June 22, 2015). "Rustan's pursues moderate expansion". The Philippine Star. Retrieved March 24, 2018.
  16. ↑ "Flat quarter for Dairy Farm sales". November 15, 2017. Retrieved March 24, 2018.
  17. ↑ Dumlao-Abadilla, Doris (March 23, 2018). "Gokongwei buying Rustan grocery chain". Philippine Daily Inquirer. Retrieved March 24, 2018.
  18. ↑ "RRHI Sec 17-A 2019" (PDF). robinsonsretailholdings.com.ph. Robinsons Retail Holdings, Inc. January 14, 2020. Retrieved November 24, 2020.
  19. ↑ Cordero, Ted (March 23, 2018). "Robinsons to buy 100% of Rustan's, Shopwise, Wellcome supermarkets". GMA News. Retrieved March 24, 2018.
  20. ↑ "Rustan's name not part of RRHI deal". Philippine Daily Inquirer. April 12, 2018. Retrieved April 12, 2018.
  21. ↑ Gonzales, Iris (April 12, 2018). "Tantocos nix use of Rustan's brand in Robinsons' takeover". The Philippine Star. Retrieved April 12, 2018.
  22. ↑ Villamor-Ilano, Marites (April 13, 2018). "Robinsons to re-brand Rustan's grocery chain". SunStar. Retrieved April 13, 2018.
  23. ↑ "Antitrust body OKs Robinsons Retail's acquisition of Rustan Supercenter shares". ABS-CBN News. August 17, 2018. Retrieved August 29, 2018.
  24. ↑ "Robinsons Retail Holdings, Inc. completes acquisition of Rustan Supercenters, Inc". Robinsons Retail Holdings, Inc. December 12, 2018. Retrieved January 19, 2021.
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