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Philippines: Shoppers gravitating to smaller, nearer stores
HYPERMARKETS and supermarkets appear to be losing out as Filipinos looking to buy basic goods such as packaged food, toiletries and other consumables are opting to go to smaller and nearer stores in a bid to cut down on costs, the local unit of data analytics firm Kantar said.
In an online presentation, Kantar Philippines shopper insight director Laurice Obana said that in order to adapt to inflationary times, Filipinos have become more discerning in their choices when it comes to fast moving consumer goods (FMCG).
FCMG, also known as consumer packaged goods, are products that sell quickly at relatively low cost. They have short shelf lives because of high consumer demand or perishability. Goods in this category include beverages such as soft drinks, fresh/frozen meat and vegetables, dairy products, bread and other baked goods, cleaning materials, and over-the-counter drugs such as painkillers.
“Filipinos put a premium on value. While value can be as straightforward as cheaper goods or paying less for the same quantity, other factors such as the increase in gas prices, traffic and uncomfortable modes of transportation have redefined value in more encompassing terms when it comes to shopping,” Obana said.
For packaged goods in general, shoppers were said to be coping with rising prices by being more open to value brands. To some extent, they are also taking into consideration where to shop.
Hypermarkets, which combine the supermarket and department store experience, and supermarkets were said to be under some pressure as most Filipinos who are feeling the economic strain are buying their FMCG needs from smaller proximity stores.
This year, 41 percent of FMCG purchases are being made at neighborhood sari-sari (variety) stores, 6-percent up from 2020 based on Kantar data. Hypermarkets and supermarkets, meanwhile, saw a 6-percent value share decline to 28 percent from 34 percent during the same period.
“Nowadays, with multiple retailers and channel options within reach, customers can easily adapt to what would best fit their budgets and lifestyle that will address their needs at the moment,” Obana said.
“Filipino shoppers are discerning on the choices they make when it comes to their channel and retailer of choice. Value delivery in forms of rewards, lower prices or promotions is a given. Convenience or the ease of access and availability of options are also important factors that shoppers now consider at the moment,” she added.
Source: https://www.manilatimes.net/2022/11/23/business/top-business/shoppers-gravitating-to-smaller-nearer-stores/1867397