THE country’s retail sector does not expect to duplicate its election spending-driven 2010 growth of 12 percent, but nonetheless sees sales growing by 5 percent to 9 percent for 2011.
And with 40 new malls sprouting in the next three years, coupled with the rising spending power of Filipinos, Philippine Retailers Association (PRA) President Frederick Go said retail sales could reach P1.74 trillion in 2015.
“Last year, despite the global financial crisis, the retail sector grew 12 percent, a high leap from the previous year’s respectable 5.5 percent,” Go said in his address at the opening of the two-day 20th National Retail Conference at the SMX Convention Center. “A true engine of the country’s economy, our industry, together with the wholesale industry, helped uplift the lives of many Filipinos by generating over 1.25 million jobs in 2009.”
Spending for consumer goods in the first two months of the year, he said, went up by 9 percent, and analysts predict the retail outlook for the Philippines remains positive in the remainder of the year.
The developers, Go said, are aware of the growing demand for retail space and increased consumer
spending, and are now on an aggressive expansion program.
“In the next three years, over 40 new malls will be added to the Philippines’ retail landscape. This creates more opportunities for our industry to create more stores, more jobs, more revenues and, I hope, more profits,” said Go, who is also president and chief operating officer of Robinsons Land Corp.
He said Robinsons Land, for instance, is getting ready to open new malls in Pangasinan, Puerto Princesa, Palawan and the former Magnolia property in Quezon City.
PRA Chairman Bernie Liu said it would be difficult to match the 12-percent industry growth last year that was mainly driven by election spending.
“We are also being battered by the financial condition in the US. A high single-digit growth will be very good for us. But we could also go back to the 2009 level of 5 percent,” Liu told the BusinessMirror.
Go said the Philippines should position itself as Asia’s shopping haven and take advantage of the growth of Asian economies.
The PRA, he said, is working closely with the government and nongovernmental entities to address issues that are bugging the industry.
“We continue to make strong representations in various government arenas on various issues that affect our business, including the use of plastic bags, the lifting of expiry dates on gift certificates, security of tenure, contracted services, and complaints on claims for royalty fees on playing music in malls and other retail establishments,” Go said.
The objective of the PRA is “to ensure that industry players operate on favorable conditions without prejudicing other industries.”
IN PHOTO -- PHILIPPINE Retailers Association President Frederick Go welcomes Ma. Elena “Ballsy” Aquino-Cruz, chairman of the Ninoy and Cory Foundation, to the opening of 20th National Retail Conference at the SMX Convention Center in Pasay City on Thursday. -- NONOY LACZA
