PRA’s Rosemarie Bosch Ong: Retail industry’s road to recovery slow but sure
“Slowly but surely” was how Rosemarie Bosch Ong, Philippine Retailers Association (PRA) president, described the retail industry’s journey in the backdrop of the lingering effects of pandemic and the new COVID variants that are emerging one by one.
“The road to recovery is still slow and unpredictable but we are taking sure steps now that would be beneficial in the long run. Slowly but surely. Ensuring the safety of people is still the priority, hence we in the PRA are supportive of the vaccination campaign of the government to protect us from the severe and deadly effects of the COVID-19,” she stressed.
Ong, who is also Wilcon Depot Inc.’s SEVP and COO, said she hopes “we can have a very merry Christmas later this year compared to last year,” as more people get vaccinated, although the retail industry keeps a “soft outlook” due to the new and more aggressive variant of the virus.
Because of the pandemic, there had been a great improvement in e-commerce, seeing as even traditional companies have migrated online. Ong noted that “retailers are now more creative and savvier, making use of technology and ramping up omnichannel strategies to offer shoppers a frictionless shopping experience on both physical and online stores.”
To support its members, Ong said that PRA is seeking government’s support to favor and uphold a fair and even level-playing field for both online and brick-and-mortar retailers, local and foreign, by way of imposing appropriate regulations, taxes, and duties.
“The PRA is also constantly providing our members and retailers valuable learning experiences through retail webinars to help them and their businesses during this challenging time of pandemic,” Ong said. “As the retail landscape continues to change and evolve, we hope that our programs such as webinars and the National Retail Conference and Expo (NRCE) will help retailers manage and navigate their businesses to keep up with the times.”
PRA recently held its 27th NRCE on August 12 and 13 virtually, highlighted by local and foreign experts that shared ways to help retailers reboot as the world transitions to the New Normal.
Ong noted that the lockdowns have accelerated the surge of digital transactions and foreign shipments to the country. With proper taxes or duties in place, she said the PRA sees this as a threat to the local retail industry.
In what Ong called an “unfair circumstance,” she said the PRA fears the local retail industry “might not recover unless government steps in and provides necessary support and protection to the local retailers.”
She added that the PRA believes that the government should balance and level the playing field in such a way that both foreign and local businesses transacting in the country undergo the same appropriate tax regulations. In this way, true competition will pave the way to more competitive local players and a thriving economy.
PRA, Ong said, is also seeking more leniency from the government once the country reaches herd immunity and that businesses “should then be allowed the flexibility to manage their own operations so long as they continue to observe/adhere to safety protocols and be allowed to operate on regular capacity.”
Ong also noticed the significant changes in the demands and behavior of the market due to the pandemic. “There was an increased demand for health and hygienic products. More people are now motivated to live a healthier lifestyle.”
“According to trend reports in the market, retail subsectors such as pharmaceuticals and drug stores, supermarkets and groceries, furniture, and home improvement, and electronic gadgets for home entertainment, have seen to have a steady to growing performance in sales. These sectors are considered more resilient to the current situation as more people now are cautious on what to prioritize,” she added.
The retail sector’s ability to survive in the long run amidst unprecedented challenges had also been tested. The importance of robust e-commerce and digital footprint has emerged.
“In a survey conducted by a financial services company, about 77% of Filipino consumers consider it as a must for local retailers to have an online presence,” Ong shared. Although the pandemic had disrupted businesses, we have not stopped witnessing positive developments.””
“The retail liberalization law, even in its present form, as well as franchising still offer foreign brands the opportunity to enter the Philippine market. For example, IKEA will soon open their store at MOA. COS, a well-known foreign apparel brand recently opened in the malls. Other retailers are introducing foreign brands as well in their merchandise mix so there are definitely opportunities for foreign brands with or without the community restrictions,” Ong noted.
The PRA also became involved with the efforts of the government to have more people vaccinated, especially those in the retail sector, given that many retail businesses fall under the essential sector. PRA supports the tripartite agreement between and among AstraZeneca, the Philippine Government, and the private sector companies, which is the Dose of Hope Project with Go Negosyo. This is a vaccination program that “aims to give access to purchase anti-COVID19 vaccines from AstraZeneca.
“We have also supported the campaign to encourage vaccination among the people with our member-retailers and malls giving special incentives to people that have been vaccinated,” Ong added.
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