Retailers expect better sales this Christmas

CEBU, Philippines - Buoyed by the strengthening confidence and improving economic state, retail players in Cebu are looking at a heathier Christmas spending season this year compared to last year.

Philippine Retailers Association (PRA-Cebu) president Melanie C. Ng revealed that the Cebu retail sector has started to notice an improving Christmas spending starting this month. In fact, some retail outlets have already prepared attractive promotions and marketing blitz to further pump prime the market.

The improving market confidence and the rising purchasing power of Cebuanos have fueled the promising outlook of retail sector in Cebu, Ng said.

Unlike the other year when consumer Christmas shopping was erratic, this year however, the trend is promising, and players are seeing a lot of optimism before the year ends.

Aside from the traditional products for gift-buying, Ng said the purchase of technology gadgets as a gift has also improved this year, with so many affordable options available in the market.

Ng, who owns technology gadget store chain nGenius of the Ng Khai Development Corporation, and the fashion and home accessory shops Gems and Premium Concepts, said that more consumers now are opting to give technology gadgets, such as mobile phones, and netbooks, among others as gifts for loved ones.

What is good now, she said, is that consumers have adopted a good planning scheme for Christmas spending. Aside from food, which is the top retail product performer during Christmas season, technology has emerged as the new top pick of the retail market.

“We are seeing an improving trend for consumer spending towards Christmas. Consumers are more excited now compared to last year,” Ng said.

With new malls opening in Cebu, and existing shopping malls are expanding, Ng said it is a good indication that the retail sector here is expecting a good year ahead.

But despite the promising business prospects, retailers must adopt cost-cutting measures to stay competitive especially with the increasing number of players attracting the Cebuano consumer base.

One of the cost-cutting measures being considered by the PRA-Cebu members is the adoption of an energy saving standard to cut almost one-third of their operational expenses. This way, retail players will be able to compete well, and at the same time sustain their good profit margins.

Earlier, the Metro Gaisano chain of department stores and Supermarkets in Visayas and Mindanao, noted an encouraging Christmas spending trend

Ruby Rodriguez, Metro Gaisano vice president for retail said, the chain is expecting a double-digit growth this year, as consumers’ buying attitude showed significant improvement, compared to the same period last year.

Rodriguez expects that traditional products like food, garments/apparel, appliances, and technology gadgets will still lead the growth this year.  (FREEMAN)