Philippine Retailers Eye Single-Digit Growth Amid Global Headwinds

The retail industry is expected to grow by the single digits this year as companies stay “cautiously optimistic” despite global headwinds, the Philippine Retailers Association (PRA) said. “As an industry, (we expect) probably single-digit growth,” PRA President Alice T. Liu told reporters on the sidelines of the 32nd National Retail Conference and Expo on Thursday. She said industry growth in the second half will depend on external factors. “We are hopeful that there will still be growth. However, as we know very well, a lot of global events that are beyond our control can impact us,” she said. Ms. Liu noted that some segments of the industry will be outliers and will see double-digit growth this year, noting that the food & beverage sector is expected to be more resilient. While most retailers grew in the first quarter, momentum was impacted by the war in the Middle East, she said. “We had a very good first quarter. I think most of the retailers grew, and then the war happened,” Ms. Liu noted. She added that while the effects of weather disruptions on the retail industry are seasonal, the damage is becoming more pronounced. “What we’re seeing now is that the gravity of the impact of the damage are becoming more and more intense,” Ms. Liu said, citing the need for retailers to be more agile and responsive to weather-related shocks. The group also called for proper dialogue on wage adjustments to ensure that these do not risk increasing retail firms’ operating costs or affecting their workforce, she said. “We are not against salary adjustment. We recognize that the cost of living has really gone up, but there has to be a dialogue as to what is the right amount,” Ms. Liu noted. In June, the Regional Tripartite Wages and Productivity Board-National Capital Region approved an P85 increase in the minimum wage for Metro Manila workers. About 18% of the workforce are employed in the retail industry, Ms. Liu said. — Beatriz Marie D. Cruz