Department Stores in the Philippines

PROSPECTS

Shopping centre expansion keeps department stores relevant

The continued expansion of shopping centres is helping department stores to remain relevant in the Philippine retailing market. Most department stores are located within shopping centres, and the number of shopping centres continues to rise in the market as developers such SM Prime, Robinsons, and Ayala expand their footprints nationwide.

Range of products driving growth

For the largest department store brand, SM Department Store, beauty products, menswear, footwear and bags are the key product categories driving growth. International brands are very popular in SM Department Store, with the retailer aiming to expand its offer of brands from overseas.

Department stores seeking to adapt to changing consumer behaviour

While the strength of a department store relies largely on the products and brands it carries, it is becoming increasingly important for operators to respond sensitively to evolving market conditions. Department stores operators are, therefore, working to adapt to changing consumer behaviour and, in particular, enhance their service offer.

COMPETITIVE LANDSCAPE

SM Department Store launches own e-commerce site

SM Department Store retained a strong lead in department stores in 2019. The brand worked to strengthen its position in the final year of the review period by launching its official e-commerce store, ShopSM.

Mi Department Store growing strongly

One of the smaller brands in department stores, Mi Department Store, is expanding aggressively and rated as the fastest-growing brand in the channel in 2019. Mi Department Store is owned by Expressions Stationery Shop Inc, which also operates an office and school supply store, Expressions.

Major Japanese player to enter market

Isetan Mitsukoshi, the leading department store operator in Japan, is set to enter Metro Manila. Japan has become a popular destination for Filipino tourists in recent years, as the Japanese Government has worked hard to attract inbound travellers.

Files are delivered directly into your account within a few minutes of purchase.