Spike in poll spending few days before elections to boost retailers’ sales

CEBU, Philippines - Election money released in the country's liquidity flow is yet to affect the retail trade, specifically in Cebu.

There is no movement of retail due to election yet. Election money is out a day before election so that is the time we expect spending," said Philippine Retailer Association (PRA-Cebu) president Robert Go.

Although, unconfirmed report said that some political parties have already released considerable amount of money to bid "votes" per voter, this underground tradition every election usually happens three or two days before the election.

"Election spending only goes to signage tarps, TV ads, news ads, radio ads, T shirt printing, transportation for campaign, water and juice, but not significant. When vote buying starts, a day before that is when significant sales comes in," said Go.

Retailers tagged this year a much more festive elections, as people are expected to have a lot of extra cash "to throw away," for shopping, while election spending fattens the money circulation within the system.

"There is always a push due to election money. Plus, people now have higher purchasing power they are not afraid to spend," Go said.

The confidence however, will not only last until the election money dries up, but retailers--big and small are positioning in Cebu banking on the long term rosy prospects of the province's over-all economy.

More job offerings, led by the outsourcing sector, tourism related businesses, and re-entry of manufacturing firms to Cebu, are just few of the solid indications of Cebu's strong growth backbones, said Go.

While there is always a trajectory movement in retail business every election season, significant jump will be noted immediately after the election day, or two or three before.

Cebu Business Club (CBC) president Dondi Joseph said that election spending on the other hand does not do much to the [overall] economy. It comes and it goes right away. These are non-productive spending. What is important are [solid] fundamentals. — (FREEMAN)