Consumer optimism to boost holiday sales

CEBU, Philippines - Cebu retailers are looking forward to upbeat holiday sales owing to the continued optimism of consumers on the country’s economic growth in general.

"Consumer spending is projected to increase by about 7 percent for the whole country and probably 9 percent in Cebu, since Cebu has always been higher generally compared to national performance," said Philippine Retailers Association (PRA-Cebu) president Robert Go.

 Noticeably, the dynamic retail performance, especially in Cebu, is driven by ready-to-eat, ready-to-drink, liquor, cigarette and non-food grocery products.

"There is still the general optimism on consumer that the economy will get better," Go added.

For the last three quarters, retail performance moved up in an average of six to seven percent. However, the good outlook for retail is based on the assumption that the Philippines will have a smooth economic and political path towards the end of the year, including good weather with no major calamities.

 "If there is no bad news, consumer spending is bound to go up especially on food. Malls will be filled and supermarkets project an upswing performance," Go explained.

 The encouraging consumer confidence is also fueled by OFW remittances, which further strengthen the consumption-driven economy in the country, he said.

  Aside from the OFW-sourced spending power of the Filipinos that drives the strong retail sector in the country, Go said Cebu specifically is privileged to have different sources of consumers, such as billions of salary given by the outsourcing sector, as well as tourism.

"Tourism is still growing. Hopefully, no bombings that would send bad news to tourists abroad," Go expressed apprehensions on the negative developments in the country that could affect tourism.

Significantly on the national level, Go said the whooping 103 million population in the Philippines is reason enough for retailers to expect good business projections regardless of season.

"All retailers know that Christmas is the biggest sales of all months and would be even be twice to thrice more than ordinary months," Go said.

Consumers are now bracing for Christmas shopping while retailers are also starting to pack up their warehouses for expected surge of demand during the season.

"Cebu will continue to be the shopping capital of Visayas and Mindanao as more and more holiday shopping sprees are done here by consumers from neighboring provinces such as Leyte, Negros, Bohol, Siquijor, North Mindanao such as Caraga region, Misamis Oriental and Occidental, Zamboanga del Norte, and others," he added. (FREEMAN)