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Retailing in the Philippines
May 2013

Retailing market sees more vibrant performance in 2012
With a better economic backdrop compared to 2011, the year 2012 sees more robust growth in the retail market, both in grocery and non-grocery channels. The industry has benefited from the increase in government spending on infrastructure, dynamic local tourism, strong BPO growth, and influx of OFW remittances. The Philippine economy remains to be largely driven by consumer consumption which has accelerated growth both for store-based and non-store channels.
Chained players expand in provincial areas
During the year, chained retailers continue to realise the increasing potential of fast growing cities outside of Metro Manila. With BPO moving beyond the National Capital Region and tourism flourishing in the southern provinces of Visayas and Mindanao, the establishment of more shopping centres in provincial cities in turn encourages the expansion of chained players in these areas. Aiming to tap emerging lucrative markets, companies like Philippine Seven Corp, SM Retail Inc and Robinsons Retail Group, among others, are keen on establishing a presence outside Metro Manila.
Grocery retailers surpasses non-grocery retailers sales growth
With players like Puregold Price Club and SM Retail Inc focused on growing their networks of stores, grocery retailers surpass growth of non-grocery channels in 2012. The growth of hypermarkets and supermarkets which sell non-grocery items like appliances, apparel and homeware, has been well accepted by middle- and low-income consumers. The trend for community shopping and value consciousness also supports growth of grocery retailers in 2012.
SM Retail Inc retains market dominance
The retailing industry in the Philippines continues to be dominated by small-scale independent players which serve a certain...

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