PHILIPPINE RETAILING
Convenience stores
lead growth in small
store concepts in PH
Convenience stores are leading the
expansion of the small store format
concept in the Philippines, showing a
growth of 20% in 2017 and 15% the year
before that, according to Nielsen’s latest
Shopper Trends report.
In 2013, there were only more than 1,620
convenience stores in the country versus close to
4,300 convenience stores as of Q1 2018.
Big retailers are not far behind in adopting the
small store format. In fact, in the last five years,
small store formats of supermarket chains have
grown close to 220 stores in 2013 to more than
410 stores as of Q1 2018 as these big supermarket
chains are focusing on expanding their small
format stores.
Small format stores are modern trade stores which
appeal to today’s modern day, on-the go shopper.
Neighborhood supermarkets, mini marts, and
convenience stores all fall under the small store
category.
Bolstering the growth of small format stores is the
increasing influence of four global megatrends
which are supporting the growing consumer
demand for faster and more convenient shopping
experiences—urbanization, women joining the
workforce, shrinking household size, and the
rise of eating out. The robust business process
outsourcing (BPO) segment also stimulates the
growth of this retail channel.
“Retailers in the past were guided by
the
paradigm that “bigger is better” but as lifestyles
and consumption habits change, a shift in where
consumers shop, what they buy, the frequency
and amount of spend follow,” states J. Patrick Cua,
Nielsen’s managing director in the Philippines.
“Small format stores meet a distinct shopper need
of convenience as they are often situated near
homes or high traffic areas.”
(Nielsen PR, 7/4/2018)
Local News
3RD QUARTER 2018
Rum maker Tanduay
launches online
fashion store thru
Shopee
Rum distiller turned fashion-brand
Tanduay has launched an online store
in partnership with Singaporean
e-commerce platform Shopee.
The new international e-storefront features some fashion products formerly only available at the Tanduay
store in Century Park Hotel. The fashion foray is an unusual execution of using apparel to build brand
awareness and thus expanding the potential customer base for an unrelated product (in this case alcohol).
Chief marketing officer of Tanduay Paul Lim said, “Online shopping has continued to gain traction in the
region with the increasing internet and smartphone penetration. We are excited about the opportunities
that our partnership will open for our business.
“As of now, the move is consistent with our core strategies to reach a growing global market of online
shoppers.”
Tanduay’s brand manager Edzel Ty noted that all of the brand’s marketing insights point towards the future
of commerce online.The brand’s rum was recently named number one globally by Drinks International,
displacing Bacardi.
(Inside Retail Asia, 7/26/2018)
Jollibee eyes 25 UAE stores by 2020
Fast food chain Jollibee has announced plans to expand across the UAE to reach 25
outlets in the country by 2020.
In line with its plans, the brand has opened its 12th store in Al Ain Mall and it is set to open two more
outlets over the next quarter at Abu Dhabi’s Al Wahda Mall and Dubai’s Deira City Centre.
The company said in a statement that the UAE plays a significant role in the company’s regional
development plan.
“The UAE is a key expansion market for the brand, ever since we launched our first outlet in Dubai Mall
in 2015. As we continue to grow, our commitment to offer diverse choices and optimum value for money
remains firm,” said Hisham Al Gurg, CEO, Jollibee UAE.
“The awareness of the brand in the UAE is increasing rapidly. The launch of the new restaurants is
driven by strong demand from customers, thereby bringing the brand closer, not only to the larger
Filipino community present in the country, but also to several other nationalities.”
An area of growth for the fast food chain is the soon-to-be launched chatbot ordering under the brand
name of Bee Talks. Customers will be able to place their orders with the ease of a click via Jollibee’s
Facebook Messenger or through their mobile browsers for home deliveries.
The expansion plan comes as the Gulf Cooperation Council (GCC) food and beverage industry is
expected to continue to grow at 7.1% annually, reaching $196 billion by 2021.
Jollibee was launched in 2015 in the UAE, where it operates under Golden Bee restaurants. The Filipino
chain has 39 outlets in the GCC.
(Arabian Business, 7/13/2018)
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