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Retail sector optimistic amid rising inflation

CEBU, Philippines — Despite the continued threat of rising inflation, the retail industry is poised to see gains for 2023, owing to the further easing of restrictions, and the apparent revenge spending. to Colliers Philippines, the revenge spending coupled with the arrival of more foreign tourists would benefit the retail sector in the country, including Cebu, which is one of the hottest tourism destinations.

Further, Colliers expects that the approval of the amendments to the Retail Trade Liberation Act of 2000 (RTLA) paves the way for the entry of more foreign retailers into the Philippines.

Colliers encourages developers with a retail footprint in Metro Cebu to reassess the ideal sizes of upcoming retail developments as they welcome more consumers back to their properties,” said Joey Roi Bondoc, Colliers Philippines associate director for research.

Colliers believes that online shopping will remain popular as Filipinos continue to put a premium on convenience. Affirming the re-assuring retail outlook for 2023, Mandaue Chamber of Commerce and Industry (MCCI) president Kelie Ko, said that people will continue to consume, despite these hiccups.

“Uncertainties are coming from outside, it cannot be denied that people are consuming,” explained Ko.

Meanwhile, the Philippine Retailers Association (PRA-Cebu) former president and owner of Prince Hypermart chain Robert Go said with so many concerns in the economy that are yet to be solved, such as inflation, forex instability, an increase in gasoline prices, among others, it’s hard to see a promising retail business for 2023.

Go explained that even in 2022, retailers still were struggling in terms of sales performance. The year 2023, Go said, would likely give flat growth in the retail sector. “Nothing we can see today that shows growth unless we see the end of the Russian war, which is farfetched,” said Go. THE FREEMAN