Retailers see 10-15% revenue growth this year

MANILA, Philippines — Revenues from the retail sector are expected to rise by 10 to 15 percent this year, according to the Philippine Retailers Association (PRA).

This is due to anticipated strong consumer spending in both online and offline channels, as well as a potential boost from the implementation of the value-added tax (VAT) refund for tourists.

PRA president Roberto Claudio told reporters that the group expects a 10 to 15 percent increase in revenues this year from the estimated P4.7 trillion last year.

“We are looking forward to 2025 as a banner year,” he said, noting that there are many factors that are expected to contribute to the growth of the retail sector’s revenues this year.

He said malls are seeing high foot traffic, which is an indication that people are actively shopping.

In addition, he said consumers continue to shop via online channels.

The PRA also expects the implementation of the VAT refund for tourists to give a boost to the sector’s revenues.

“That can help our tourism and retail industry,” Claudio said.

Signed into law in December last year, the measure aims to encourage more tourists to visit the country through the introduction of a VAT refund system.

Under the law, tourists are eligible for a VAT refund for goods worth P3,000 from accredited stores, provided the items are taken out of the country within 60 days of purchase.

The PRA has long been pushing for a VAT refund system for tourists to boost visitor arrivals and expenditure in the country.