Retail sector anticipates better 2010

CEBU, Philippines - The Cebu retail industry is anticipating a better 2010, as economic indicators are now on the recovery track and industry players looking forward to expansion plans next year.

Philippine Retailers Association (PRA-Cebu) president Melanie Ng told The Freeman yesterday that Cebu retail industry players were able to “fight the good fight” of crisis for 2009, and “we are looking for an exciting year in 2010.”

“Overall 2009 was a good year for the Cebu retail industry, considering all the challenges we were facing the whole year both local and global,” Ng said.

She said the Cebuano retailers were able to rise up to the challenge by beating the odds.

“With the use of better merchandizing and better marketing, I could see that this was how retailers combat the challenges of the more prudent way of shopping style of the Cebuanos,” she added.

Because of this, the industry is projecting a good year in 2010, specifically that economy is seen to boost further with the “Election Year”, and purchasing power of the consumers is expected to get much stronger.

Even as early as the crisis year in 2009, Ng said retailers started to invest on expansion to prepare for the economic recovery that is seen to start in 2010.

“More branches are being opened. The retailers now do a lot of careful feasibility studies to survive into the ever changing market needs and preferences,” Ng stressed.

Food, gadgets, and apparel emerged to be the top three retail products that pushed the industry’s growth amid the weak consumer purchasing power brought about by the global financial distress.

Retail giants in Cebu identified these three top products that keep some retailers thrive despite the frugal purchasing attitude adopted by consumers.

Marissa Fernan SM Prime Holdings vice president for Visayas and Mindanao, and Ayala Center Cebu’s group head Clavel Tongco, both identified that food, gadgets and apparel purchases are still strong, and made retail sector stronger.

Businesses that are selling these kinds of products are still performing well, although volume of sales may have been declined as consumers preference shifted to much cheaper products, and have become wise buyers.

According to Jay Aldeguer of Island Souvenirs Inc. (ISI) apparel sales still strong, but most consumers prefer items that are sold below P200.

Thus, most apparel stores have also introduced products that are priced below P200 such as accessories.

Golden ABC Inc., president Bernie Liu echoed Aldeguer’s observation, saying Penshoppe and other apparel brands of the company have now developed their own accessory lines to offer wide options of products that are cheaper.

Over-all, retail players attributed that sustained dynamism of the industry in the gloomy economic landscape, due to the strong OFW remittances, Business Process Outsourcing (BPO) and tourism in Cebu that pushed active purchasing power among Cebuanos.