The Philippine retail industry is banking on the onset of a “consumption sweet spot” to realize an annual sales growth of at least 8 percent from this year through 2017.
At the launch of the Asia-Pacific Retailers Convention and Exhibition (APRCE) 2015, Philippine Retailers Association (PRA) President Lorenzo Formoso said that consumer spending is foreseen to accelerate starting this year until 2017.
“No less than the Chief Executive advised us, some 17 retailer groups, that this consumption sweet spot will happen from 2015 until 2017, when a large part of the population will reach the working age and spend more,” Formoso said.
He expressed confidence that this phenomenon can accelerate the estimated 5- percent to 8-percent growth of the retail industry over the next few years, possibly even reaching 10 percent in the long term.
According to PRA data, retail sales have increased by 1.5 percent in May over the same month last year. This is a minimal slowdown from the previous month’s growth of 1.8 percent.
Consumption spending has already reached P6 trillion, according to PRA Chairman Roberto “Toby” Claudio Jr.
This prediction can be further propped up by the establishment of at least 20 more malls, nationwide, in the next couple of years, Formoso added.
The first step toward this faster growth, however, is promoting the Philippines as a shopping mecca on a par with Singapore and Hong Kong.
“We’re not trying to compete with other shopping destinations but we want to be considered in the same group, we want to be top of mind when foreign tourists think of shopping,” Formoso said.
To raise awareness of the Philippines as a viable shopping destination in Asia, the PRA has partnered with the Department of Tourism (DOT) to hold a Philippine Shopping Festival this year, from October 23 to November 8.
The two-week sale is being eyed to be an annual event to carve out the Philippines as a shopping spot.
The PRA and the DOT has partnered up this year with 14 shopping mall chain operators with more than 40 retail establishments to be participants in the festival.