Robust growth for retail sector seen

MANILA, Philippines - The Philippine Retailers Association (PRA) expects robust growth for the retail sector this year given consumers strong purchasing power on the back of the country’s positive economic performance.

“We’re expecting double-digit growth for the retail sector this year,” PRA president Frederick Go told reporters at the sidelines of the 16th Outstanding Filipino Retailers and Shopping Centers of the Year Awards Night.

He said that according to the Business Monitor International, which provides consultancy and industry analysis, the country’s total retail sector was estimated at P1.42 trillion last year.

He said the PRA sees growth for the retail sector this year given the country’s positive economic conditions.

“We are seeing greater confidence which allows consumers to spend more freely,” he said.

He noted that there is growth in money being sent by Filipinos working overseas to the country which is helping drive consumption.

Growth is likewise being seen in the business process outsourcing (BPO) industry which is able to provide good quality paying jobs for Filipino youth allowing them to spend.

Go said that as consumption is seen to remain strong, more new concept stores are expected to be created in the retail sector.

He said international brands are also seen to continue to enter the local market.

But even as international brands are expected to come in, he said local brands are likely to continue to grow since these still offer goods that are more affordable.

“Because of success of expansions here, many (local) brands want to go overseas,” he said.

In terms of type of consumer goods, he said food is still seen to continue to outpace the growth of other goods.

“As people get wealthier they tend to want to dine more and try more cuisines,” he said.

The PRA groups over 300 companies such as retailers, mall and shopping center operators, traders or suppliers, manufacturers, distributors, and wholesalers, among others.