The Philippines’ retail industry is predicted to hit 1.5 trillion pesos ($34.27 billion) in sales this year.
Data from Nielsen released at the NRCE convention in Manila this week showed that Filipinos are the second most confident consumers in Southeast Asia after Indonesia, which could mean strong spending growth.
Steady Overseas Foreign Worker remittance inflows are also boosting the purchasing power of Filipinos. According to Bangko Sentral ng Pilipinas, remittances in May have hit a five-month high of $1.87 billion.
The Philippine Retail Association says retail sales could grow to 2 trillion pesos by 2017 as shopping malls are expected to increase.
“The country’s leading developers are set to open over 40 new malls in the next two years. This augurs well for the economy,” said PRA Chairman Frederick Go.
He added that shopping is the top contributor to tourism with 130.5 billion pesos in 2011.
Meanwhile, consultancy company Interbrand says that Filipino mall developer SM Prime has ranked third as Southeast Asia’s best retail brand after FairPrice of Singapore and Parkson of Malaysia.
