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Shopping boost buoys supermarkets


MANILA, Philippines - Large Supermarket chains enjoyed a hike in sales during the last weekend before Christmas despite the economic downturn. But sales in smaller groceries have yet to pick up as their customers are expected to do last-minute shopping instead, industry leaders Monday said. An increase in remittances from Filipinos abroad and falling food prices may have encouraged consumer spending, experts said. Sales over the weekend were particularly strong for supermarkets attached to malls, Philippine Association of Supermarkets, Inc. (PASI) President Carlos V. Cabochan said in a telephone interview. PASI counts as members major supermarkets such as Shopwise, Robinsons, and Unimart. SM Hypermarket Executive Vice-President Robert Kwee concurred with Mr. Cabochan’s observation, adding "We did quite good, slightly better than last year." Robinsons Supermarket Assistant Vice-President Bonifacio Y. Mabanta, for his part, claimed in a text message that December 1-21 sales were 14% higher than in the same period last year. An increase in remittances from Filipinos working overseas has also allowed their families back home to spend more, University of Asia and the Pacific economist Victor A. Abola said. Remittances for the first ten months of the year grew to $13.7 billion, 15.5% more than the same period last year. "It’s basically OFW (overseas Filipino worker) remittances. That’s a major consideration," Mr. Abola said in a telephone interview Monday. University of the Philippines Sociology Instructor Kenneth F. Cardenas said consumers may also have been perked up by inflation news. "I’m guessing it might have something to do with the lower inflation rates in October, November," Mr. Cardenas said. "Even with little changes, consumer behavior would respond in such a fashion." Inflation eased to 9.9% in November after staying in double-digit levels for five months and hitting as high as 12.5% in August. Smaller groceries, however, did not enjoy the same sales boost over the weekend. "It was not as much as I expected. In stand-alone stores, there aren’t much people. There’s still a lot of unsold Christmas ham. I’m hoping today, it will start to pick up," said Steven T. Cua, president of the Philippine Amalgamated Supermarkets Association, Inc. (PAGASA). PAGASA is made up of neighborhood groceries and caters to the B-C-D market, Mr. Cua said. Mr. Cabochan expects smaller stores to see a pickup as Christmas approaches, especially as consumers opt to go to groceries that are nearer their homes. — J. A. D. Hermosa, BusinessWorld
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