University of San Carlos
Downtown Campus
”Balance Scorecard: Watsons Philippines”
MA 3102: Performance Management Systems
MW 6:00 PM - 7:30 PM
Submitted by:
Princess Jannah G. Ungab
Submitted to:
Fritz Janross Arriesgado, CPA, CB
August 27, 2025
I. Company Background
Watsons Philippines, part of the A.S. Watson Group and a joint venture with the SM Group, is the
leading health and beauty retailer in the country. Since opening its first store in 2002, Watsons has
become a trusted name for health, wellness, and beauty products. The company's strategic focus is on its
"O+O" (Offline plus Online) retail model, which integrates its extensive physical store network with a
strong digital presence to provide a seamless customer experience.
II. Performance
As of early 2025, Watsons Philippines is in a strong growth phase, driven by aggressive store
expansion and digital innovation. The company opened 80 new stores in 2024, with a significant number
located outside of Metro Manila to serve more local communities. This expansion, combined with its
robust e-commerce and loyalty programs, has solidified Watsons' market leadership in the Philippines.
The company has also prioritized sustainability and social responsibility, embedding "Planet, People, and
Products" into its core business strategy.
III. Balance Scorecard
Watsons Philippines enters 2025 as the undisputed leader in the country’s health and beauty
retail sector, maintaining its strong position in a highly competitive market. By the end of 2024, the
company had already established a vast network of 1,166 stores nationwide, making it one of the most
accessible retailers in the Philippines. This growth is not slowing down—in fact, Watsons is targeting to
open 90 additional stores in 2025, with a particular emphasis on expanding into underserved provinces
through community store formats. These smaller branches are strategically designed to bring essential
healthcare and personal care products closer to local neighborhoods, reflecting the company’s mission of
making health and wellness more accessible to Filipinos across the country.
Financially, Watsons posted an impressive 14.3% year-on-year sales growth in 2024, a
performance that stands out given the challenging economic environment marked by inflation and shifting
consumer habits. This growth was largely attributed to strong nationwide demand, enhanced by Watsons’
promotional campaigns and thematic events such as BeautyCon, Health Expo, Lippie Lovers Sale, and
Watsons Playlist. These initiatives not only boosted sales but also reinforced Watsons’ reputation as a
trendsetter in the health and beauty space. The company’s continuous investments in digital platforms
further strengthened its financial performance, as online channels provided new revenue streams
alongside physical stores.
From the customer perspective, Watsons has solidified itself as a household name and trusted
brand. In 2024, the company was recognized as the “Health & Beauty Retailer of the Year – Philippines,”
a testament to its consistent delivery of quality, affordability, and convenience. Its growing digital presence
has also paid off—Watsons recorded over 340,000 new app downloads in 2024, supported by engaging
online campaigns such as Find It at Watsons, which achieved an extraordinary 92.1% Share of Voice
(SOV) and 87% Share of Engagement (SOE), surpassing industry benchmarks. Overall, Watsons’ digital
campaigns were able to reach over 67 million people nationwide, further expanding its brand visibility and
strengthening its customer loyalty programs.
Internally, Watsons has placed strong emphasis on sustainability and operational innovation. By
the end of 2024, the company had already rolled out 65 solar-powered stores, reflecting its commitment
to environmental responsibility and energy efficiency. Initiatives like Trash to Cash recycling drives and
eco-friendly packaging highlight Watsons’ focus on greener business practices, aligning its operations
with growing consumer demand for sustainability. On the operational side, the continued rollout of
community stores and improvements in inventory management systems are helping ensure product
availability and efficient service across all branches.
Finally, under the learning and growth perspective, Watsons has shown an ability to adapt to the
changing retail environment through digital transformation and corporate social responsibility (CSR). The
company has actively invested in its O+O (Offline plus Online) ecosystem, integrating in-store and digital
experiences to create a seamless customer journey. Tools such as OptimO, Watsons’ retail media
solution, and personalized loyalty programs enable stronger customer relationships while driving
innovation within the organization. At the same time, Watsons continues to champion social causes
through CSR efforts such as Operation Smile, which funds cleft repair surgeries, and Alagang
Pangkalusugan, which provides free health consultations and medical outreach in communities.
With these achievements as its foundation, Watsons’ 2025 Balanced Scorecard is designed to sustain
financial growth, deepen customer loyalty, enhance operational efficiency, and reinforce its role as a
socially responsible and innovative retailer. The company is well-positioned not only to maintain its
leadership in the Philippine market but also to set higher standards for the health, wellness, and beauty
retail industry.
Perspectives Goals/Objectives Measures Target Key Initiatives
Financial Boost sales revenue Year-on-year ≥15% sales growth in Launch
sales growth 2025, building on the nationwide
14.3% growth in 2024 campaigns like
that was achieved BeautyCon,
despite inflationary Health Expo,
pressures and Lippie Lovers
changing consumer Sale, and
habits Watsons Playlist
to stimulate
seasonal
spending
Expand physical Number of From 1,166 stores Aggressive
footprint stores (end-2024), target to expansion in
nationwide surpass 1,256 stores provinces and
by end-2025 with 90 underserved
new openings, areas
including community
pharmacy outlets
Customer Strengthen brand Brand Maintain Watsons' Continue major
leadership recognition/ position as Health & experiential
awards Beauty Retailer of the campaigns and
Year - Philippines, health-beauty
awarded in 2024 expos
Enhance digital App Exceed 340,000 new Execute more
engagement downloads, app downloads in digital-first
social media 2024, sustain 92.1% activations (e.g.,
reach, Share of SOV and 87% SOE; "Find it at
Voice (SOV) aim for Watsons"),
and Share of 400,000+ downloads in strengthen loyalty
Engagement 2025 and campaign program
(SOE) reach above 70 million
Internal Improve accessibility Community Maintain ~400 Roll out
Process store community stores neighborhood
expansion (2024 baseline) and Watsons formats
expand further in 2025, and
ensuring more pharmacy-focused
presence outside branches
Metro Manila
Advance Solar-powered Grow beyond the 65 Expand Trash to
sustainability stores, solar-powered stores Cash recycling
eco-initiatives installed in 2024, with a drives, introduce
2025 target of at least more eco-friendly
80 solar-powered packaging
stores nationwide
Learning & Drive digital Digital tools, Strengthen Watsons' Investments in
Growth transformation omnichannel "O+0" (Offline + e-commerce,
performance Online) ecosystem; CRM
raise online sales personalization
share of revenue to and new retail
≥15% by 2025 media tool
OptimO
Deepen CSR & CSR program Scale programs like Broaden medical
community impact reach, Operation Smile and outreach,
beneficiaries Alagang sustainability
Pangkalusugan; target campaigns, and
to reach 50,000 direct public health
beneficiaries in 2025, partnerships
compared to several
nationwide activations
in 2024
References:
CEDTyClea. (2025, January 23). Watsons Philippines reaches 1,166 stores nationwide. BusinessWorld
Online.https://www.bworldonline.com/corporate/2025/01/24/648667/watsons-philippines-reaches-
1166-stores-nationwide
Dotdailydose. (2025, May 31). Watsons HWB Awards 2025 honors outstanding brand partners in the
health, wellness, and beauty industry - Dot daily dose. Dot Daily Dose.
https://www.dotdailydose.net/2025/05/31/watsons-hwb-awards-2025-honors-outstanding-brand-p
artners-in-the-health-wellness-and-beauty-industry/
Reporter, S. (2025, June 5). Watsons Personal Care Stores Philippines named Health & Beauty Retailer
of the Year - Philippines. Retail Asia.
https://retailasia.com/co-written-partner/event-news/watsons-personal-care-stores-philippines-na
med-health-beauty-retailer-year-philippines
