Although still at single-digit growth, local retailers expect full recovery this year as cooling inflation is driving consumption.
Rosemarie B. Ong, president of the Philippine Retailers Association (PRA), told reporters at the Outstanding Filipino Retailers (OFR) Awards 2023 “Tibay Gabi ng Pagpupugay”, on Thursday, July 8, said the continued easing in the country's inflation is good for consumers and retailers.
Inflation cooled down to a one-year low of 6.1 percent in May from 6.6 percent in April on slower increases in transport costs, food and non-alcoholic beverages, the Philippine Statistics Authority said. PSA data showed the May inflation was the slowest since it settled at the same rate in June 2022. It, however, remained elevated compared to 5.4 percent a year ago.
Ong said that the recovery in the retail sector is largely driven by the resiliency of Filipino consumers that ultimately drive-up consumption.
“We are expecting full recovery this year, definitely it is not double-digit but still a single-digit growth,” said Ong. Last year, the local retail sector also grew single digit at par with the country’s 7.6 percent full-year GDP growth.
“Consumption is a big driver,” Ong said, citing that Filipinos are now going back to the malls after the pandemic.
Although some sectors are experiencing a tapering of growth and not robust as 2022 because of base effects, Ong said that there is still organic growth in most sectors.
Growth will be driven by strong sectors such as the basic commodities, food and beverage, home improvements, among others, she said.
Ong, who is senior executive vice president and chief operating officer of Wilcon Depot Inc. – the country’s largest home improvement store chain, said their sector has also proven to be very resilient because everybody is focused on renovating and improving their homes.
She noted that the mobility restrictions during the pandemic period have resulted in revenge activities like home renovations. The full reopening this year of the domestic economy also enabled Filipinos to catch up on their delayed travel plans.
This helps domestic tourism and boosts micro small and medium enterprises (MSMEs). “There is a domino effect and this is helping the MSMEs,” she said.
2023 OUTSTANDING FILIPINO RETAILERS AWARDS -- Jose Ma. "Joey" Concepcion III, founder of Go Negosyo, receives the Philippine Retailers Association President's Award on June 8, 2023 at Okada, Manila. Concepcion was recognized for his unwavering effort to help local retailers, particularly the micro, small and medium enterprises, especially during the pandemic period. Also in photo (from left) Chan Kok Bin - PRA Vice President and CMG Retail, Inc. Chairman; Roberto S. Claudio - PRA Vice Chairman and Quorum International, Inc. (Toby's) Chairman; Bernie H. Liu - PRA Vice Chairman and Golden ABC, Inc. (Penshoppe) Chairman and CEO; Samie Lim – PRA Chairman Emeritus and Blims lifestyle Group Chairman; Rosemarie B. Ong – PRA President and Wilcon Depot Inc. SEVP-COO; Joey Concepcion – Go Negosyo Founder; Paul A. Santos – PRA Chairman and Picture City President; Ma. Alegria Sibal Limjoco – PRA Vice Chairperson and Central Books Director; Soccorro R. Bautista – PRA Director and Blooming Ventures Inc. President; Mars C. Chua – PRA Vice Chairman and Sportshouse Int’l. Leisure, Inc. President; Lorenzo C. Formoso – PRA Vice Chairman and Encel Trading President;
Meantime, Jose Ma. "Joey" Concepcion III, founder of Go Negosyo, won the PRA President’s Award for his unwavering support to MSMEs, particularly retailers. Concepcion batted for measures to ensure MSMEs continue to stay afloat, especially during the pandemic. Concepcion was also cited by the PRA for his efforts during the pandemic in batting for continued operation of retailers and in ensuring health, safety and protection of their workers.
Meantime, the 2023 OFR awardees and their respective categories are Pandemic Resiliency (large category) are McDonald’s Philippines, Karat World (medium category), and SilverWorks (small category); Sustainability awardees are Wilcon Depot (large category), Bayo (medium category), and SilverWorks (small category); and the Pandemic Retail Innovation awardees are Penshoppe Golden ABC Inc. (large), R.O.X (medium), and, Tumi (small category).
In addition, the PRA also bestowed Special Awards to Ayala Malls, Robinsons Malls, and SM Supermalls for exhibiting remarkable resilience, agility and creativity in adapting to the new normal of retail operations.
“They have gone above and beyond to extend assistance and concessions to their tenants, including flexible retail arrangements, marketing, and promotional support, and enhanced health and safety measures,” part of the citation read.