CEBU, Philippines - Food, gadgets, and apparel emerged to be the top three retail products that help buoyed the industry’s growth amid the weak consumer purchasing power brought about by the global financial crunch.
Retail giants in Cebu identified these three top products that kept some retailers afloat despite the frugal purchasing attitude adopted by consumers.
Marissa Fernan, SM Prime Holdings vice president for Visayas and Mindanao, and Ayala Center Cebu’s group head Clavel Tongco, both identified that food, gadgets and apparel purchases are still strong, and made retail sector stronger.
Businesses that are selling these kinds of products are still performing well, although volume of sales may have declined as consumers preference shifted to much cheaper products, and have become wise buyers.
According to Jay Aldeguer of Island Souvenirs Inc. (ISI) apparel sales still strong, but most consumers prefer items that are sold below P200. Thus, most apparel stores have also introduced products that are priced below P200 such as accessories.
Golden ABC Inc., president Bernie Liu echoed Aldeguer’s observation, saying Penshoppe and other apparel brands of the company have now developed their own accessory lines to offer wide options of products that are cheaper.
According to Liu consumers still buy, but they are more concern of the price tags, apparel sales go hand-in-hand with accessories too, he said.
For his part, retail player Robert Go, whose company manages the chain of Prince Warehouse Club department stores and supermarkets, he said that for his stores, food and cosmetics, including gadgets are still the top performers.
This means, he said that people are still buying, especially food because it is the primary necessity. What is surprising though, Go said is the sustained interest of consumers to invest on gadgets and cosmetics.
On the other hand, retail players attributed that sustained dynamism of the industry in the gloomy economic landscape, due to the strong OFW remittances, Business Process Outsourcing (BPO) and tourism in Cebu.—Ehda M. Dagooc