Philippines Retail Sector - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Philippines retail sector is segmented by Products (Food and Beverages, Personal and Household Care, Apparel, Footwear and Accessories, Furniture, Toys and Hobby, Electronic and Household Appliances, Others), and by Distribution Channel (Supermarkets/Hypermarkets, Convenience Stores, and Department Stores, Specialty Stores, Online, and Other Distribution Channels). The report offers market size and forecasts for the Philippines retail sector in Value (USD million) for all the above segments.

Market Snapshot

Philippines Retail Sector
Study Period:

2017-2026

Base Year:

2020

CAGR:

>4 %

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Market Overview

The retail sector in the Philippines has been facing challenging times in the study period which got worsen due to the sudden COVID-19 pandemic. The majority of forms of physical retail including supermarkets and convenience stores, hypermarkets, specialty stores, department stores, and other small and medium store owners around the country are facing challenges owing to the lockdown and physical distancing measures. Due to the fear of contamination many customers temporarily stopped visiting the stores.

However, though customers were welcome into the stores, factors such as the limited number of people in-store capacity, frequent/regular disinfection have added unexpected costs to the retailers which are restricting the profits. The increased labor demand is another factor that is challenging the retailers to be active on the market. The ban on large gatherings, social events have a huge impact on occasional and seasonal sales which are a large part of the retailing in the country. The apparel segment has been affected greatly in the year 2020, especially the branded and luxury players in the market who are active in apparel, footwear owing to the low demand for the products.

Scope of the report

The report on the Philippines retail sector provides a comprehensive evaluation of the market, with an analysis of the segments in the market. Moreover, the report also provides the competitive profile of the key manufacturers, along with regional analysis. Philippines retail industry is segmented by Products into Food and Beverages, Personal and Household Care, Apparel, Footwear and Accessories, Furniture, Toys and Hobby, Electronic and Household Appliances, and Others, and by Distribution Channel into Supermarkets/Hypermarkets, Convenience Stores, and Department Stores, Specialty Stores, Online, and Other Distribution Channels. The report offers market size and forecasts for the Philippines retail sector in Value (USD million) for all the above segments.

By Product
Food and Beverages
Personal and Household Care
Apparel, Footwear and Accessories
Furniture, Toys and Hobby
Electronic and Household Appliances
Others
By Distribution Channel
Supermarkets/Hypermarkets, Convenience Stores, and Department Stores
Specialty Stores
Online
Other Distribution Channels

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Key Market Trends

Food and Beverages Segment Continued Recording More Revenues Even During Pandemic

The retail industry in the Philippines is a combination of various products varying from food and beverages to electronics and appliances, furniture, and several household products. Food and beverages have been one of the leading product segments in the market which has been in high demand in the country. The demand for food and beverages surged during the COVID-19 pandemic and as they are considered as essential items, demand for perishable goods including vegetables, fruits, meat, health drinks and cold beverages as people got more time to spend at home. Following the food and beverages, demand for several personal and household care products surged during the pandemic helping the market to record more revenues and posted a 50% surge in revenues at height of the pandemic. Similarly, the products which are helpful in work-from-home set-ups, such as electronic gadgets and furniture, have seen to be performing well during the year 2020.

phil 1

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Online Distribution Channel is Emerging in the Market

During the difficult times of COVID-19, the retail market in the Philippines was largely hit and the demand for several luxury and comparatively high-priced items such as electronics, large appliances, furniture was hit hard during the year 2020. As the retail stores are closed for a long time owing to the lockdown measures, the customers have started switching to the online distribution channel for their shopping needs. Though the online channel accounted for a lower share in the market during the study period, a shift in customers' approach towards the online distribution channel was observed. The total visits to various shopping applications climbed to approximately 4.9 billion during the peak of the lockdown period in the country. During Q2 2020 the total visits were up to 24% when compared to the same time the previous year which showed a great shift in customer preferences. The trend is continued to be strong in the year and is anticipated to continue in the forecast period as well helping the segment to record more revenues.

phil retail 3

Competitive Landscape

The report covers major players operating in the Philippines retail market. In terms of market share, few of the major players currently dominate the market. The retail market has been growing significantly with companies expanding stores and considering the business potential in new areas. Most of the unorganized retail outlets are increasingly being replaced with big retail hypermarkets, supermarkets, and other retail chains. This is expected to continue on a large scale during the forecast period, which will significantly lead to market growth.

Recent Developments

  • April 2021, the Department of Trade and Industry (DTI) has approved over PHP 3.3 billion worth of loans under a facility to assist micro, small and medium enterprises (MSMEs) dealing with the impact of the COVID-19 pandemic.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints/Challenges

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Porter's Five Force Analysis

    6. 4.6 Consumer Behavior Analysis

    7. 4.7 Insights on Technological Innovations in the Retail Industry

    8. 4.8 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product

      1. 5.1.1 Food and Beverages

      2. 5.1.2 Personal and Household Care

      3. 5.1.3 Apparel, Footwear and Accessories

      4. 5.1.4 Furniture, Toys and Hobby

      5. 5.1.5 Electronic and Household Appliances

      6. 5.1.6 Others

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets, Convenience Stores, and Department Stores

      2. 5.2.2 Specialty Stores

      3. 5.2.3 Online

      4. 5.2.4 Other Distribution Channels

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 SM Investments Corp ( SM Retail, Inc.)

      2. 6.2.2 Puregold Price Club Inc.

      3. 6.2.3 SSI Group Philippines

      4. 6.2.4 Metro Retail Sores Group, Inc.

      5. 6.2.5 Robinsons Retail Holdings, Inc.

      6. 6.2.6 Rustan Supercenters Inc

      7. 6.2.7 Alfamart

      8. 6.2.8 7-Eleven

      9. 6.2.9 Golden ABC, Inc

      10. 6.2.10 Mercury Drug Corp*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE PHILIPPINES RETAIL SECTOR

  8. 8. DISCLAIMER

  9. 9. ABOUT US

**Subject to Availability

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