When speaking at the Philippine Retailers Association’s (PRA) annual Retail CEO Briefing in cooperation with its First Quarter General Membership Meeting for 2019, NEDA Undersecretary Rosemarie Edillon detailed just what the retail industry in the Philippines is like. 

Retailing makes up about 23% of the total services industry and has contributed massively to the services sector, with total gross value added (GVA) in real terms increasing by 1.8 times to P1.22 trillion in 2018 from the P686.3 billion seen in 2009, despite a slowdown in trade. 

Edillon also revealed that 2018 saw the Philippine retail industry expand by 5.9% in 2018, and 5.8% in the fourth quarter alone. 

She said: “Notwithstanding the risks, retailing in the Philippines is expected to remain positive alongside the continued expansion in the economy as strong macroeconomic fundamentals and favorable demographics provide a solid base for investments in the country.”

The National Economic Development Authority (NEDA), Department of Finance (DOF), and Nielsen all reported that economic growth and domestic demand led to an optimistic forecast for Philippine retail businesses in 2019. 

According to Nielsen Managing Director Patrick Cua, the rest of 2019 will see jobs and spending power for consumers increase, fuelled by food and consumer goods moving quickly. 

Additionally, the TRAIN law put in place in 2018 enabled Filipinos to grow their spending power, Department of Finance Director Euvimil Nina Asuncion said. This was proven by the double-digit sales growth and high-profit margins of publicly-listed retail giants.