Cebu’s retail industry is projected to expand this year with local and national investments pouring in, the regional National Economic Development Authority (NEDA) said last Friday.
Asst. Regional NEDA Director Efren Carreon said the continued growth of Cebu’s outsourcing, tourism and construction sectors will fuel its already vibrant retail industry.
“The Regional Gross Domestic Product (GRDP) last year was at 7.5 percent to 8 percent. This year we estimate the region’s economy to grow faster at 8.9 percent to 11.2 percent starting this year up to 2016,” Carreon said.
He said Central Visayas posted the highest growth rate in 2010 with 12.5 percent compared to the national average of 7.6 percent.
The following year, the national GDP growth hit 3.9 percent, but Central Visayas, composed of Cebu, Bohol, Negros Oriental and Siquijor provinces registered a GRDP growth of 7.5 percent.
Extras
Carreon said Cebu’s retail industry will be fueled with the movement of construction materials for the rebuilding activities in the province and neighbor Bohol following the devastation of the Oct. 15 earthquake and Supertyphoon Yolanda.
He also said the movement of people to Cebu to seek jobs and new or temporary homes like those from Tacloban will also increase demand for consumer products from the basic to “extras” like restaurants, apparel, gadgets, leisure and wellness.
Jun Yap, Philippine Retailers Association Cebu chapter president, said the entry of many foreign and national brands from clothing, gadgets, beauty and more is an indication that these brands now see Cebu as a major market.
“These are actually brought in here by local investors. They franchise or get distributor rights to market these products here because we can’t avoid it, Cebu is attracting a lot of these brands now,” he said.
Yap said local businessmen are distributing these products here as their way to remain competitive especially with the Asean economic integration set to go full blast next year.
Return of investment
“Now we are seeing a lot of new brands opening here including high-end brands. These brands are already positioning themselves in Cebu which is considered one of the economic centers in the country,” Yap said.
Recently, a Manila-based beauty and wellness brand Posh Nails Hand and Foot Spa opened in SM City Consolacion.
“This is our first business here in Cebu and we are confident we can achieve ROI (return-on-investment). We plan to add one more outlet in SM SRP mall sometime next year,” said owner Jennyleine Tulawie, who’s from Zamboanga City.
Local retailers are also actively expanding in other key cities in the country like Islands Souvenirs and Prince Warehouse.
“We are fortunate to be in the tourism industry as travel numbers continue to rise. Some areas especially those directly and indirectly affected by Yolanda have suffered some setbacks,” said Jay Aldeguer, Islands Group president.
Islands Souvenirs just opened their flagship store in Cagayan de Oro City at the Limketkai Center and will be opening three more outlets in Cagayan de Oro within the year. A couple of outlets are slated to open in Camiguin soon.
“We also just opened stores in Iloilo and Bacolod. This brings us to 109 outlets nationwide. We are present in Manila, Baguio, Vigan, Camsur, Ilocos Norte, Cebu, Bohol, Boracay, Palawan, Davao, Iloilo, Dipolog, Bacolod, Dumaguete,” Aldeguer said.
The Prince Warehouse group is also expanding in Leyte with their latest outlet set to open in Abuyog this year.