The retail market in the Philippine, mainly the shopping malls, remain vigorous and upbeat, according to the SM Group.
In a recent Nikkei Business
Philippines-Japan Investment Forum in Tokyo, Japan, SM Supermalls COO Steven T.
Tan said the country runs counter to the global trend of right-sizing and even
closing down many large-format stores that are rightsizing, as well as shopping
Tan said robust overseas
Filipino workers’ remittances and sustained activity in the business-process
outsourcing industry are the main drivers of the consumer-driven economy of the
“Unlike how it is in many
parts of the world, retail in the Philippines is vibrant, upbeat and full of
opportunity,” Tan said in his speech.
As of end-September 2019,
consumer confidence in the Philippines was the second highest in the world,
“Optimism to spend among
Filipinos is more than just a sentiment. We see it translating into actual
consumer behavior, especially retail,” Tan said.
“It is interesting to note how
brick-and-mortar retail continues to dominate and how it will continue to grow
alongside the growth of Internet retailing in the Philippines. The Philippine
environment is conducive to all kinds of retail, both digital and brick and
mortar as we look at opportunities in both channels,” he added.
Over the past five years, Tan
said a growing number of foreign brands have been entering the local market,
mainly in food and beverage, and clothing and apparel.
He then encouraged Japanese retailers to consider investing in three immediate opportunities in the Philippines: food, beauty and health and wellness.