DALI, O!Save reshaping Philippines retail landscape

 (First of 3 parts)

In a bustling neighborhood, nestled between rows of modest homes and busy streets, stands a new kind of store that has quickly captured the attention of local shoppers.

DALI and O!Save, two prominent players in the hard discount store market, are quietly making a name for themselves, transforming the way people shop and making an impact on the retail industry.

These stores, with their straightforward design and humble presence, are emerging in areas where larger supermarkets are often a rare find. Offering a practical, effective solution to the rising cost of living, DALI and O!Save aim to provide affordable, high-quality essentials to those who need them most.

For consumers, it’s a welcome shift: a chance to shop smarter, save more and still get the products they need. According to consumers, they choose hard discount grocery stores for their lower price, accessibility and convenience. Most consumers save at least P500 to P1,000 per week in buying necessities in comparison to shopping in leading supermarkets.

For Sheri, a mother of two, buying at DALI allows her to give her children a variety of snacks. Compared to other grocery stores, her weekly budget for basic necessities decreased to P1,500 from P2,500 when she switched to a hard discount store.

Similarly, student Charley who lives in a dorm in Manila, saves 25 percent of her allowance by shopping from hard discount stores. Aside from basic needs, she also enjoys buying fries and hash brown which can be bought for just P99 per kilo compared to the supermarket that sells it for at least P150.

According to the Department of Economy, Planning and Development (DEPDev), an individual can spend P64 for three meals a day to not be considered “food poor.” Amidst the faster rise in inflation and growing population, prices of basic grocery items gathered from hard discount stores, supermarkets and sari-sari stores reveal what a consumer can buy for at least P500 for a family with five members.

Data reveals that a family can buy seventeen basic grocery items for P484.85 in DALI, P496.54 in O!Save, P553.57 in a regular supermarket and P571 in sari-sari stores.

The price of certain goods across hard discount stores, supermarkets and sari-sari stores are obtained through shoe-leather journalism.

This data shows that consumers switch from traditional stores to hard discount stores due to their low prices.

What’s the deal?

The major selling point of hard discount stores is their commitment to delivering high quality goods at prices that won’t break the bank. Their no-frills layout is designed to make grocery shopping as quick, easy and budget-friendly as possible, allowing customers to find what they need without distractions.

By stripping down the store experience to its essentials, these stores eliminate unnecessary expenses that are common mainstream retails, that can drive up prices. This approach extends beyond the store’s layout to its business model, allowing every consumer’s budget to count and go further.

To ensure that customers are satisfied with their purchases, DALI and O!Save offer a basic return policy. If something isn’t quite right, they make it easy to return items, giving shoppers peace of mind without the complicated return processes that are usually practiced in established supermarkets.

Several key factors also contribute to their low-cost advantage: No flashy marketing campaigns or promotional materials are used to boost sales. There’s also no elaborate product placement or promotional displays designed to lure shoppers into purchasing extra items. Instead, the shelves are stocked with practical, everyday products that meet the needs of regular consumers.

Another cost-saving measure is the absence of baggers at the checkout, which reduces labor costs. With fewer staff members needed, these savings are passed on to customers, ensuring that the lower prices on the shelves reflect the store’s commitment: affordability.

With this practical approach, these stores are setting new standards for what it means to shop wisely. Whether you’re on a tight budget or a shopper looking to stretch your peso, DALI and O!Save offer an invaluable option, observing both significant savings and satisfaction.

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Cabuello and Cudal are third year journalism students at the Polytechnic University of the Philippines College of Communication. The three-part report is an output for their business journalism course under the guidance of Prof. Aileen Camille Dimatatac.