RP Supermarkets group notes high consumer confidence

The Philippine Association of Supermarkets, Inc. (PASI) noted high consumer confidence in the country that is brought about by positive indicators of the economy.

PASI president Carlos V. Cabochan said under the leadership of President Benigno Aquino III, consumer confidence is up and shoppers are going back to the stores.

Cabochan said there is high confidence among consumers, the housing and commercial building constructions is also high as well as with car sales and shoppers are back into the stores.

“Given this, we look forward to an extended six years honeymoon period with the new leadership,” he said.

 However, the large retail and wholesale players have continued to expand their operations through outlets across geographical locations. Local independent retailers and wholesalers are beginning to feel the heat as chains penetrate regional locations.

And this has disrupted equilibrium in markets as sales activity with shift from one player to another and from one geographical location to another.

Manufacturers/suppliers have not been spared from this disruption as their volumes of sales are not constant across channels.

With this environment, they need to get new ideas and techniques from experts for the supermarket owners to respond in a changing retail and wholesale business environment and to strengthen their competitive positions.

Cabochan said the entry of big players is affecting the small ones and PASI will continue to assist the small ones on how to survive this big challenge.

PASI’s membership nationwide consists of 35 big companies, over 200 supermarkets and over 400 convenience stores.

He said they continue to look for a better collaboration between retailers and manufacturers to bring down costs and working together they become more efficient as well as maintain the prices.

 Meanwhile, Cabochan cited the Davao scenario where retailers here enjoy healthy competition because supermarkets become wholesalers for sari-sari stores owners.

 “The prices for both groceries and sari-sari stores are almost the same as they were able to maintain lower prices,” he said. Cabochan was here during the recently held PASI National Conference held at the Marco Polo Davao.(PNA) LDV/DDB/lvp


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