CEBU CITY, Philippines — The dramatic increase in the number of Cebuanos employed by the booming business process outsourcing (BPO) sector has helped keep the retail industry here afloat despite rising costs of goods and services and the downturn in most export markets led by the United States.

With more people employed in BPO firms such as call centers, more disposable income is finding its way into the retail industry.

These generally young staffers, after all, are ready to spend on clothes, cellular phones, food and pampering services such as a massage or a manicure.

Industry estimates place the number of employees of the Cebu BPO sector to about 20,000. As more companies set up in Cebu, the number is expected to reach 100,000 in about two years, with each earning at least P10,000 a month.

Jay Aldeguer, Cebu chapter president of the Philippine Retailers Association, said that thanks to the better-than-expected growth in the BPO industry, the retail industry here is able to meet the challenges posed by spiraling inflation.

“Gasoline, rice prices are something people can instantly relate to,” Aldeguer said. “The fear is there and people have become more prudent in their spending. But because of the BPO industry, the retail industry is managing to stay afloat.”

Despite the difficult times ahead, big retail companies here are already preparing for the inevitable rebound, which is evidenced by the almost simultaneous construction of malls in the city center.

Cebu Holdings Inc., an affiliate of Ayala Land Inc., will be spending as much as P700 million to finance the redevelopment of a lagoon into a Cebu-style Greenbelt with al fresco restaurants and retail shops.

Cebu Holdings subsidiary Cebu Property Ventures Development Corp. is putting up another P60 million in a retail strip project inside the Asiatown IT Park.

The SM City Cebu mall spent about P300 million for the construction of SM City Northwing that houses mostly high-end brands.

The SM group has also laid out plans to invest millions in the construction of Savemore supermarket branches in the province. It already has three in operation and more are in the pipeline.

Another retail development, Parkmall@168, is scheduled to be built on a three-hectare lot at the Mandaue City Reclamation Area.

These companies firmly believe that the local retail industry will get over any hump on its way to further growth.

“We are on an expansion mode because Cebu is a good beneficiary of IT and tourism industries, which are in turn driving personal consumption, on top of the fact that Cebu receives a lot of remittances,” said CHI president Francis Monera.

“We are growing our own retail business given these opportunities,” he added.

Meanwhile, the Philippine Retailers Association hopes that the holding of the Cebu counterpart of the Outstanding Filipino Retailer award will give local retailers additional incentive to further improve their operations.

Aldeguer said the search seeks to recognize Cebuano retailers who have become successful in terms of growth and good ethical practices.

He said homegrown Cebuano retailers who have been named Most Promising Retailer for at least two years and in operation for at least five years are eligible for the award.

Aldeguer noted that a number of Cebu retailers had already won awards at the national level.

These include Penshoppe and Aldeguer’s Islands Souvenirs.

Aldeguer said the PRA would recognize the top 10 retailers at the Second Cebu Regional Retail Conference, scheduled for June 21.