‘Retail sector remains upbeat ahead of holiday rush’

MANILA, Philippines —  The country’s retailers remain optimistic on Christmas season sales despite ongoing challenges in the country.

Philippine Retailers Association (PRA) chairman Roberto Claudio and president Alice Liu said the group is optimistic on the upcoming Christmas season, which is traditionally the busiest and most vibrant period for retailers.

“Despite headwinds, the resiliency and resourcefulness of Filipino consumers continue to anchor industry confidence,” the officials said.

The PRA is also banking on the influx of overseas Filipino workers (OFW) remittances, which historically boosts spending on value-for-money gifts, household needs and personal purchases during the holidays.

Given this outlook, the PRA is encouraging retailers nationwide to prepare their strongest value offerings, as well as their stores and online channels for increased activity.

“The PRA stands ready to support our members as we work together to deliver a positive, inclusive and accessible holiday shopping experience for all,” Claudio and Liu said.

The Philippine Chamber of Commerce and Industry (PCCI) said it also remains optimistic about sustained economic activity for the Christmas season, which has long been a key period for Philippine businesses due to the traditional surge in shopping, dining and festive activity.

“This year, PCCI anticipates that consumer spending may remain steady – offering meaningful opportunities for businesses, particularly MSMEs (micro, small and medium enterprises), to engage customers and boost sales as the year ends,” the group said.

Despite the optimistic outlook, the PCCI flagged potential risks that could temper growth such as recent typhoons including Typhoon Uwan, which caused damage in several regions.

The PCCI said the recent typhoons could prompt households and businesses to adjust their spending away from typical holiday purchases.

“Combined with current political challenges, constraints in public spending and global economic uncertainties, these factors may slow consumer activity,” the PCCI said.

To maximize the holiday surge, the PCCI is encouraging businesses to make use of digital platforms, ensure stable and reliable operations as well as uphold quality service.

“The organization is hopeful that the Christmas season will not only uplift Filipino communities, but also reinforce the momentum needed to usher in a stronger economic performance in the coming year,” the PCCI said.

Philippine Institute for Development Studies senior research fellow John Paolo Rivera said retail sales are still expected to post moderate growth this Christmas season, but not as strong as previous years.

Rivera said holiday traditions, strong OFW remittances, mall traffic, food and gift spending and rising demand for affordable or value-oriented items are expected to drive the growth.

Promotions, installment plans and e-commerce are also expected to help support sales.

“However, growth will be tempered by high food prices (albeit slower headline inflation), recent typhoon-related income losses and generally cautious consumer sentiment,” he added.

“Overall, there will be steady but measured holiday growth driven by essentials and practical gifting,” Rivera said.