HomeBANWAvol. 6 no. 2 (2009)

The Changing Landscape of the Philippine RetailFood Industry

Glory Dee Romo | Larry N. Digal



The retail industry, growing at a significant rate, has contributed muchto the economy of the country as highlighted in its increasing share in thepersonal consumption expenditure (PCE), gross domestic product (GDP),and employment. This study examines the importance of the retail industry,discussing its pattern of spread, the supply and demand conditions that affectthe industry, the change in the procurement system of the retail formats, as wellas the actions taken by some stakeholders to address the negative impact of such changes. The major players in the industry that are based locally have resortedto importation, modernization, and expansion to other areas to maintain their position. These activities gave the retailers a competitive edge over the others,even over the foreign retailers. Moreover, initial findings suggest that the changesin the food retail structure influenced the way the supermarkets source theirfresh produce from their suppliers. This procurement system determines whichactors are included in the structure. Only those suppliers who can respond tothe stringent standards set by the supermarkets can continuously serve them.