MANILA, Philippines - The Philippine Retailers Association (PRA) sees sustained growth in retail sales this year amid the country’s positive economic performance as well as strong consumption spending.
Speaking at the 22nd National Retail Conference held at the SMX Convention Center in Pasay City yesterday, PRA chairman Frederick Go said that while the retail industry had a good year last year in terms of its sales, it is poised to see sustained growth this year on expectations that the economy would continue its strong performance.
Go noted that according to Business Monitor International which provides consultancy and industry analysis, Philippine retail sales are expected to hit P1.5 trillion this year and even increase further to P2 trillion by 2017.
The country’s total retail sector was estimated by the consultancy firm at P1.42 trillion last year.
The country’s positive economic performance is seen to allow the retail sector to achieve sustained growth this year with consumption spending expected to remain strong.
“The Philippine economy remains robust buoyed by strong consumption spending and investments supported by overseas Filipino worker remittances,†Go said.
He also said that several research conducted by different organizations indicate that the country would continue to see strong consumption spending this year.
He cited that the Economist Intelligence Unit’s Globe Shopper Index has placed Manila in the 11th spot in the list of top 25 places to shop in Asia Pacific, which compares countries according to their shopping advantages and disadvantages.
A recent survey from market research company Nielsen has also shown that Filipino consumers are the second most optimistic in the world as of the second quarter of this year.
According to the National Statistical Coordination Board, revenues from tourists who shop in the country have risen 16.8 percent to P131 billion in 2011 from the previous year.
“All these indicate we are going to see further upswing this year,†Go said.
The opening of over 40 malls in the next two years, he added, would likewise support sustained growth in sales of the retail sector.
But while the PRA expects retail sales to grow this year, PRA chairman emeritus Samie Lim reiterated that the sector still faces challenges such as competition from foreign brands entering the country.
“The next wave is the entry of ASEAN (Association of Southeast Asian Nations) brands,†he said.
Lim said that as more foreign brands enter the local market, it would be better if the government provides a roadmap for the retail and franchise industry which would have strategies to allow businesses to expand here and overseas.
Lim plans to speak with the PRA board on how a roadmap for the retail and franchise industry could be pushed.
Apart from a road map, he also intends to discuss with the PRA board how mall owners could improve the traffic situation as many malls are located along main roads.
Malls owners, he said, could consider opening later than the usual at least twice a week to contribute to better traffic flow.
The National Retail Conference organized by the PRA, is being held to inform retailers of the latest trends and provide tips on how they can become more competitive.