MANILA: The Philippines’ retail sector is expected to become a US$286-billion market by 2027, driven by the increasing number of sari-sari stores and supermarkets, as well as the explosive rise of e-commerce, according to the latest report of global management consulting firm Kearney.
In its latest report entitled, 2023 Global Retail Development Index, Kearney said the local retail industry, which was worth $203 billion in 2022, is projected to grow by 5 per cent annually.
“Traditional Philippine stores, known as sari-sari stores, located at every street corner and deeply rooted in the nation’s culture, continue to increase, providing access to smaller packs and essential goods in residential areas,” the report said, highlighting the contribution of these small, neighbourhood retail shops.
“The government is trying to formalise them to provide business opportunities and low-interest loans. Private retailers are also trying to partner with sari-sari stores, via the (business-to-business) route,” the report added.
Kearney’s report said that local supermarkets have also shown good growth and continue to be a leading retail channel.
“Major players such as Puregold Price Clubs, Robinson Retail and SM Retail are expanding their footprint. Supermarkets are also strengthening their offerings through innovation,” the report said.
Kearney’s report also highlighted that the country’s per capita income level is increasing at a faster pace than the rest of the Asia-Pacific region, leading to a parallel increase in the number of affluent Filipino consumers, and hence, stronger interest from luxury brands.
Some brands have opened multi-concept stores and luxury flagships. In December 2023, Prada announced a joint venture with Store Specialists Inc, which is involved in the retailing of leading luxury brands such as Hermes.
Ayala, the Philippines’ premier mall chain, is enjoying a resurgence of luxury store openings, including Gucci, Tiffany & Co and Cartier,” said the report.
Another highlight in the report is the growth of e-commerce in the country, describing its rise as “explosive,” recording a 50 per cent growth from 2017 to 2022. - Philippine Daily Inquirer/ANN
