Supermarkets in the Philippines

PROSPECTS

Smaller grocery formats address changing shopping behaviour

Grocery retailers in 2018 continued to improve their smaller formats so as to keep up with changing consumer behaviour, with many Filipinos now preferring to shop in smaller outlets, albeit more frequently. Aside from the aggressive expansion of their convenience store banners, multi-format retailers are also focusing on their supermarkets.

Online grocery retailing starting to take off

In 2017, grocery retailers tested consumers’ response to internet retailing by partnering established e-commerce platforms. In 2018, the popularity of online grocery retailing grew so rapidly that not only grocery retailers started to launch their own e-commerce sites but third party marketplaces such as Lazada and Shopee also introduced a dedicated platform for online grocery sales.

Supermarkets set to continue to slowly expand their footprint but will be at risk due to inflation

Supermarket operators will continue to expand the footprint of their chains. Supermarkets are also some of the major anchors of shopping malls, which will help support growth of the channel.

COMPETITIVE LANDSCAPE

SM Retail set to launch its own online store using a click-and-collect model

Being part of the largest conglomerate in the Philippines which is also a mall developer, SM Retail is focusing on the click-and-collect model to encourage customers to still visit malls and grocery outlets. SM Retail’s online shopping platform is part of SM Prime Holding’s bigger project, which is expected to make SM more competitive with other e-commerce sites.

AllDay Supermarket offers something new

Under its AllDay Supermarket chain, the local retail operator All Value Holdings is slowly opening new outlets across the country, attracting shoppers with its unique design, which is pleasing on the eye and can help make grocery shopping a more enjoyable experience. Aside from aesthetics, AllDay Supermarket has other unique offerings such as its “Paluto Section”, which is already a common feature in the foodservice industry and local seafood markets, but not retail stores.

Dairy Farm International merges with Robinsons Retail and Robinsons takes over Rustan’s Supercenters

Robinsons Retail’s portfolio is set to expand following a deal with Dairy Farm International, which has a 100% stake in Rustan’s Supercenter in the Philippines. Robinsons operates more than 160 supermarkets across the country and will gain a further 75 once it completes its acquisition of Rustan’s Supercenters.

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