Philippine Retailing 2019 Q1 | Page 4

PHILIPPINE RETAILING Local News DUTY FREE PH TO OPEN MORE PROVINCIAL STORES, OFFER MORE LOCAL PRODUCTS BSP SEEN EASING POLICY TO SUPPORT GROWTH TARGET The Bangko Sentral ng Pilipinas (BSP) is increasingly expected to begin easing its policy stance in the second quarter this year to support the growth trajectory back to the 7-8 percent target. This is exclusive only to PRA members in good standing (updated in their annual dues) and active in participating the organization’s events. DFC Chief Operating Officer (COO) Vicente Pelagio Angala said that with this expansion, the state- owned retail company is giving speed to its target of reaching 15% of the international traveler by 2027. “We are in coordination with the Department of Transportation (DOTr) and definitely it will happen this year,” said Angala. But, he said, “with the inflation specter nipped for the time being, the BSP will likely unload a string of easing measures to help buttress growth closer to the administration’s growth target of 7-8 percent.” Angala also revealed that DFPC’s total sales reached $217 million in 2018, a 2% growth from 2017. With the central bank expected to start cutting key rates in the second quarter, another reduction in banks’ reserve ratio is also seen as early as the first quarter this year. Filipino tourists, Balikbayan’s and OFWs remain the DFPC’s top source market with 59.9 million USD total of transactions, followed by the Americans ($4.9 million), Chinese (1.5 million USD), and Canadians ($1.1 million). “With liquidity conditions still relatively tight and the Governor’s (Nestor A. Espenilla Jr.) pledge to slash reserve requirements (RRR) to single digits by the end of his term, we can see the BSP slashing RRR further in the first quarter followed by a possible policy rate cut in the second quarter to help bolster growth for the second half of the year,” said Mapa. Private forecasters polled by the BSP expect this year’s average inflation to hit 4.1 percent and 3.8 percent in 2020 and these forecasts were based on their assessment that the balance of risks to the inflation outlook has shifted toward the downside. The private forecasters’ estimates are however higher than BSP’s 3.2 percent and three percent forecasts for 2019 and 2020, respectively. Manila Bulletin, 01/26/2019 The Philippine Retailing is the official quarterly newsletter of the Philippine Retailers Association with office at 2607/2610 Jollibee Plaza F. Ortigas Jr. Road (formerly Emerald Ave.) Ortigas Center, Pasig City, Philippines Telephone Nos.: (632) 687-4985, 687-4180, 687-4181 Fax No.: (632) 636-0825 For questions, comments, suggestions, contributions or ad placements email us at: [email protected] or [email protected] The PRA BizCart (Affinity Program) is a unique project which offers exclusive discounts, special accommodations, free consultations, freebies etc. from the supplier members of the association. Duty Free Philippines Corporation (DFPC) has announced plans to open new stores at the international airports of Puerto Princesa, Palawan and Panglao, Bohol this year. Commenting on the Philippine GDP turnout of 6.1 percent in the fourth quarter, which brought the full-year growth to a lower- than-expected 6.2 percent (the 2018 target was 6.5-6.9 percent), ING Bank senior economist Nicholas Mapa said the high inflation of the past year was one of the reasons for the low GDP number, although consumption spending is still strong. 4 1ST QUARTER 2019 30-DAY FREE SERVICE trial of WAVFlow Proprietary Music with Branded station ID/messaging (valued at Php 800.00/month) Free additional 1 month for a 12-month subscription of Alliance Web POS -a web-based point of sales system (POS) using Software as a Service (SaaS) architecture to provide centralized hosting allowing you fast and easy access anytime, anywhere. 30-DAY FREE SERVICE trial of WAVSight Digital Menu Board or Digital Signage (valued at Php 1,000.00/month) 15-DAY FREE SERVICE trial of WAVScent With corresponding value: Small (60 sq.m & below) - Php 2,000.00/month Medium (61 to 150 sq.m) - Php 8,000.00/month Large (151 to 250 sq.m) - Php 12,000.00/month Pay only 11 months for a 12-month service subscription for items 1 to 3 Avail 10% discount on one-time purchase of WAVControl (audio and video hardware) *FREE SERVICE for items 1 to 4 worth Php 7,600 to 27,600 (Value based on store size) VALID UNTIL: MARCH 2020 VALID UNTIL: MARCH 2021 Digital Advertising Spots Through Organic Entertainment Contents: Reduce your ad spend by as much as 50% while increasing its efficiency and longevity by leveraging on organically engaging digital entertainment videos. 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