Philippine Retailing in a Broad Scope
Essay by Nicolas • December 21, 2011 • Essay • 316 Words (2 Pages) • 1,656 Views
* Retail sales in the Philippines continue to be a major driver of the country's economy.
* The number of retail establishments in the country is estimated to be over 400,000. However, most of these are home-based industries, unregistered and employ less than 10 people.
* Retail businesses which employ at least 10 people comprise about 5% of the total number of retail establishments.
* Food retail outlets still form the bulk of retail outlets in the country comprising about 65% of the total number of outlets. Spending on food remains the biggest expenditure of Filipinos.
* The youth sector and the upwardly mobile Filipinos aged between 25-35 remains the most lucrative market for retailers. As such, new retail outlets to serve this market are on the upswing which includes clothing, apparel, sporting and leisure good retailers.
* According to a World Bank Study, the firms operating in the Philippines are considered among the most regulated consequently stifling productivity and causing corruption and higher unemployment. Recognizing this, the government is addressing these issues. In the retailing sector, the government is attracting foreign investors through the Retail Trade Liberalization Law.
* Although 30% of the country's total retail sales is concentrated in Metro Manila, the leading retailers in the country are expanding to key urban centres and growth areas outside Luzon, Visayas and Mindanao. This is expected to push retail sales in these areas. Leading shopping centre developers have plans to construct at least three new malls each year.
* Leading retailers in the country also operate the biggest shopping malls. "Malling" is considered a popular leisure activity in the country with the bigger malls attracting an average of 400,000 daily shoppers each which can reach as high as 800,000 on weekends and during the discount season. The aggregate retail turnover of the 15 leading retailers is about 10% of the country's total retail sales. Market Background of Philippine Retailing
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