Retailers still positive about sales during holidays

By Justine Irish D. Tabile, Reporter

THE Philippine Retailers Association (PRA) said it remains optimistic about its members’ sales prospects during the year-end holidays, even in the face of fears spending will be dampened by the corruption crisis.

PRA Chairman Roberto S. Claudio told BusinessWorld that retailers continue to expect sales growth of 10-15% over the full year.

“As the country navigates ongoing economic challenges, the PRA remains optimistic about the upcoming Christmas season — traditionally the busiest and most vibrant period for Philippine retail,” the group said in a statement.

“Despite headwinds, the resiliency and resourcefulness of Filipino consumers continue to anchor industry confidence,” it added.

It said the industry is counting on overseas Filipino worker remittances, which could have an outsized impact this year because of the peso’s weakness.

“We anticipate the influx of remittances, which historically boosts spending on value-for-money gifts, household needs, and personal purchases during the holidays,” PRA said.

“We encourage retailers nationwide to gear up with their strongest value offerings and prepare their teams, stores, and online channels for increased activity,” it added.

John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said that he expects retailers “to see a moderate but positive Christmas season driven by strong remittances, holiday traditions, mall traffic, and demand for affordable gifts.”

“However, growth will be more cautious than robust as households deal with income losses from recent typhoons, high food prices, weaker confidence, and tighter credit conditions,” he said via Viber.

“Retailers offering discounts, value packs, and flexible payment options will benefit most, as consumers prioritize essentials while still finding room to celebrate,” he added.

Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said his retail outlook for the end of the year is cautiously optimistic.

“Sales should receive a solid lift from traditional drivers like festive promotions, mall events, year-end bonuses and payouts, increased remittances from overseas Filipino workers, and heavy marketing pushback by brands that want to recoup lost ground after a weaker year,” he said via Viber.

“E-commerce and omnichannel tactics will likely capture a growing share of incremental demand, while experiential draws — pop-up stores, holiday activations, and partnership tie-ins — can drive foot traffic back into malls,” he added.

However, he said elevated inflation, declining consumer confidence, and logistical snags could dampen demand.

“Other risk factors include sharper income inequality that shifts spending toward value and discount channels, any abrupt policy or tax changes that affect retail margins, adverse weather events that limit mall access, and competitive discounting that erodes profitability even if volumes rise,” he added.