In a recent briefing, TNS Asia Pacific, a leading global market research and insights consultancy firm, warned of a shifting consumer landscape in the Philippines that will see convenience stores and online shops growing at a faster rate than ar;s reatraditional and modern trade outlets.
TNS Asia Pacific Managing Director Tara Prabhakar recounted that last year’s retail trade in supermarkets had been mostly flat while sales in the traditional outlets, like sari-sari stores even fell by three percent.
The expected rise in demand for convenience stores and smaller shops that provide easier access to buyers is attributed to accelerating urbanization projected to increase by 70 per cent in 2014,
The high rate of urbanization also implies increasing pressure on infrastructure and an increase in the cost of doing business.
For an entrepreneur this would meaning having to pay more to put up a tore with a hyper format (supermarket type) and run the risk of slow recoup of investments.
Thus, smaller store formats, as typified by a convenience store, may make good business sense to put up.
Aside from ease of shopping, convenience stores provides advantages such as providing new watering holes for the young population.
It is projected that 5,000 new such stores would be put up over the next several years, resulting in an altered Philippine retail environment.
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