The Philippine retail sector is expected to sustain robust growth over the next several years with sales seen to surge to as much as P2 trillion by 2017.
Citing the forecast of Business Monitor International, Frederick D. Go, chair of the Philippine Retailers Association, said total sales to be generated by the local retail sector might reach P1.5 trillion this year.
Go said the strong performance of the sector was buoyed largely by strong consumer confidence and a healthy local economy.
“Last year was truly a good year for our industry and the country. While other countries had challenges, the Philippines grew by 6.6 percent and became Asia’s second-best performing economy next to China,” Go said in his speech at the opening of the 22nd National Retail Conference on Wednesday.
Go noted that early this year, ratings agencies Fitch, Moody’s, and Standard and Poor’s gave the Philippines investment grade status.
“These favorable economic conditions and good ratings our country received enabled us to score major victories here at home,” he said.
Economic growth, he added, remained robust due largely to strong domestic consumption and investments supported by steady OFW remittance inflows. It is this strong consumer confidence that has been steadily driving the country’s retail sales.
“Reports indicate that the upswing in the economy will continue this year… We in the retail industry should be able to take full advantage of these positive developments,” Go said.
As it is, the country’s leading developers are taking advantage of this boom as they are set to open more than 40 new malls in the next two years.
“This augurs well for the economy as this will bring about the creation of more jobs, new business opportunities both for retailers as well as their suppliers,” he added.
Citing the Economist Intelligence’s “Globe Shopper Index Asia-Pacific” report, Go said Manila secured the 11th spot in the top 25 most attractive places to shop for foreign shoppers.
However, PRA chairman emeritus Samie C. Lim cautioned mall owners of the potential consequences that might arise from putting up too many malls.
“Some malls in the provinces should not even be there. Retailers are suffering because they are forced to put up branches in those areas,” he noted.
Lim also urged mall owners to institute training programs for their sales people and provide their own traffic security personnel to manage traffic in within their areas.