Retailers see improving business as inflation slows
MANILA -A local trade association of retailers sees improving business for the rest of the year due to easing inflation, a welcome relief for an industry that had been severely challenged by the country’s high inflation environment after suffering deep cuts at the height of the COVID-19 pandemic.
Rosemarie Ong, president of Philippine Retailers Association (PRA), said on Thursday night said she sees industry sales increasing by a high of 9 percent after headline inflation slowed down for the fourth consecutive month in May to 6.1 percent.
PH inflation rate for May 2023 slows down further to 6.1%
“It’s a welcome development for us, especially because for several months we’ve been experiencing [high inflation]. So now, at least it is improving,” Ong told reporters on the sidelines of the PRA’s 2023 Awards Night for Outstanding Filipino Retailers.
Ong said they expect this growth to be driven by gains in the food and beverages sector, as well as in the home improvement segment.
“I think the home improvement segment is very resilient because everyone was focused on renovating or improving their homes,” Ong said.
She added that “revenge travel” continues to be a trend this year, which they expect to further drive spending and consumption, boding well for the retail sector.
Ong also cited improving local tourism, which is helping shore up sales of micro, small and medium enterprises.
Meanwhile, the retail industry association handed awards to local firms in recognition of their achievements and contribution to the industry, coming from a difficult three years since the health crisis which began in 2020. Silver jewelry retailer Silverworks won the pandemic sustainability award for the small enterprises category, Jewelry firm Karat World won for the medium category, while McDonald’s Philippines won for the large category.
In terms of pandemic retail innovation, Retail brand Tumi won the small category, outdoor superstore R.O.X (Recreational Outdoor eXchange) won for the medium category, while Golden ABC Inc. (The Penshoppe Group) won for the large category.
