To sari-sari store industry: ASEAN integration seen detrimental

CEBU, Philippines - The looming market integration will definitely pose threats to the sari-sari store industry but only the Filipinos themselves can help strengthen the small enterprises to survive in the unified market.

As ASEAN entrepreneurs will have more access to bring businesses into the Philippines, small retail store owners will experience a tough competition with them, said Robert Go, chief executive officer and president of retail firm Prince Hypermarket.

The growing number of convenience stores and supermarket chains in cities and in some provinces can affect the income and business operation of sari-sari store owners.

Although sari-sari stores cover 30 percent to 40 percent of the total retail sales in the Philippines, Go said that the importance and contribution of the said industry to the economy are usually not being talked about.

The micro, small, and medium enterprises comprise more than 90 percent of the total business establishments in the nation.

“People always talk about the big ones,” the CEO noted in an interview with reporters yesterday during the launching of the 9th Sari-Sari Store Festival. “Wa ta katan-aw sa ka-importante ani…kitang tanan nakapalit man gyod sa sari-sari store. That’s why makita nato how important the sari-sari store is.”

Go said that Filipino entrepreneurs—whether big or small—should never allow foreign companies to dominate the business community in the country especially as the ASEAN integration poses more market accessibility.

“Sila ray madato ana kita pobre gihapon,” he emphasized. “Kahibawo nga pobre na daan, mapobre ta og samot. Atong suportahan atong kapwa Pilipino.”

Go also cited that years ago there was actually a prediction that threatened the sari-sari store vendors who were said to be replaced and contended by convenience stores in the future.

However, the Cebuano businessman stressed that Filipinos should never allow the distinctive retail system which has always been a big part of the Philippine tradition to be just “wiped out” by competition or even the integration.

He said: “Sayon ra kaayo sa mga dagko (companies) mosud sa gagmay (companies), kaysa gagmay nga makasud sa dagko.”

Go further added that there is really an urgent need to help these micro-entrepreneurs through giving them the know-how, capability training and readiness to become aggressive amid the tight competition in the retail industry.

In addition, a study released last year by research firm Nielsen Philippines revealed that the local buying habits for grocery items of the majority of Filipinos have changed recently because of the availability of supermarkets in many parts of the country—now closer to the neighborhoods.

Its Shopper Trends Report showed that while people used to buy household item needs from community sari-sari stores, many have now chosen to go to supermarket shopping for their essential needs.

Despite this, Go still believed that a number of small-income and middle-income consumers has remained very dependent on neighborhood stores as these allow buying in small quantities which big retail stores do not offer.

The sari-sari store business has also given livelihood to a lot of self-employed people who are able to help their family and improve their lives.

Go also reiterated the role of the buying consumers in patronizing and keeping the sari-sari stores present and alive in every Philippine street corners as these not only make the country unique in the world but also help its people. (FREEMAN)