Professional Documents
Culture Documents
strategies in many industries. The intensity of competition varies across the industries. The
intensity of competition is higher in low return industry as compared to high return
industry due to less requirement for capital and common products that require minimum R
& D (Research & Development) and efforts for production.
According to Porter, the nature of competitiveness in a given industry can be viewed as a
composite of the following five forces:
1. Rivalry among competitive firms
2. Potential entry of new competitors
3. Potential development of substitute products
4. Bargaining power of suppliers
5. Bargaining power of consumers
Here is a very brief example of an Industry Analysis for the Cases using Shopwise Super center,
specifically Shopwise Super center’s competition in the consumer retail industry and not in the
industries where it competes. Remember, that you are concerned with where Shopwise Super center
is positioned in the industry relative to the respective industry forces.
The industry:
In the Philippines, food retailing industry involves a wide array of sellers from the sidewalk
vendors, wet and dry markets, sari-sari stores, groceries, supermarkets, hyper marts,
warehouse and discount clubs and convenience stores. Food means brisk business. Food is
intricately linked with its culture and traditions. In the family, food accounts for 43 percent of
total expenditures. Outside the home, eating has become lucrative for the retail business.
Expenditures for dining out, excluding corporate representation registered an average growth
rate of 15 percent to 20 percent per annum in the last 10 years. In the quick service or fast food
segment, the total market in 2000 was over PhP 30 B. (Palma, 2005). According to the Family
Income and Expenditure Survey (FIES) of the National Statistics Office(NSO), household
spending on food increased by 26 percent from 1997 to 2000. Personal consumption
expenditure (PCE) on food and beverages in 2002 reached about PhP 448 B from PhP 401.7 B in
1998, or an average annual growth rate of about 3 percent (Omaña, 2005).
Retail development
The Philippine retail market is well developed compared to other southeast Asian
countries (Indonesia, Malaysia and Thailand, for example). The share of processed and
packaged food sold in retail outlets was estimated at over 60 percent in 2003 (Reardon et
al., 2003). There has been growth in the number of retail food outlets and fast food
outlets in the Philippines in the past 15 years (Elsevier, 2005). Despite this growth, sales
of fresh fruits and vegetables, meat, and fish are still largest in small locally owned
convenience stores and wet markets (true in NCR and countryside regions alike)
(Elsevier, 2005).The leading retail chains and convenience store chains in the Philippines
are Filipino owned and are mostly concentrated in the NCR region. Table 5 provides an
overview of the leading retail and convenience chains, ownership, sales, outlets, and their
locations.
Supermarkets are big business in the country. An industry report cited that there are about 5,000
supermarkets in the country in 2007 with estimated sales of over P100 billion.
A supermarket is a self-service store offering a wide array of food and non-food items, which are
organized into departments. It is a retail format that is bigger than a grocery store and it has from
three to 25 counters. A variation of a supermarket is a hypermarket, which is larger in size and
usually combined with a department store. A hypermarket has more than 25 counters and sells
both wet and dry goods.
Concentration
Although large food retailers appear to dominate the retail food industry, these retailers
argued that they face stiff competition especially among supermarkets and have to practice
loss –leader pricing to maintain their market shares. They practice giving discounts, regular
bargain sales, reduction in margins, expansion of target markets, bigger store space, and
good product quality (Patalinghug, 1996).
One possible way of proving this claim is through the computation of the concentration
ratios. Available data on these concentration ratios showed that supermarkets are actually
not concentrated even in Metro Manila. Rather, the top four supermarkets only have a
1.08% concentration ratio and that they only have about 1% share of total sales.
Generally, data on concentration ratio support arguments that the retail industry is fairly
competitive. One of the arguments in the retail industry is that it is not the retailing sector
but the food manufacturing sector that is highly concentrated. Canning and processing
vegetables, vegetable juices, smoking of fish and other marine products, wine
manufacturing industries among others have 100 percent four-firm rations (Digal, 2001).
Eleven of the 53 industries under this sector have four-firm concentration ratios of 100
percent. Almost half of the 53 industries sectors in the country are extremely concentrated,
having ratios of at least 90 percent.
Shopwise Supercenters
Shopwise, the pioneer in hypermarket operations in the Philippines, formally began
operations in November of 1998. Since then, it has grown to seven branches located in
Alabang, Makati, Libis, Araneta Center, Antipolo, Harrison Plaza, and Sucat in Paranaque.
Shopwise has gained a loyal following among a broad market segment, and is well-known
for fun, freshness, a wide range of merchandise assortment, and affordability.
Other foreign retailers which had expressed their interest in Philippine market but have yet to make
their presence here include Ahold, Seiyu, Pricesmart, Seiyu, and Welcome.
Policies
Over the past two decades, the Philippine economy witnessed radical changes in its policies from
monopolies, cronyism, and excessive government intervention under Marcos to more liberalized
markets under Aquino and Ramos (Gonzales, 1999). During the Marcos era, the main economic
policy toward industrialization was import substitution. However, its success rate was low as traders
experienced high tariffs, quotas, and an overvalued exchange rate. The government became
dependent on regulatory controls, public enterprise, investment incentives, and trade restrictions. The
goal of the government to undergo industrial development resulted into the concentration of
industries, sheltered domestic markets, and distorted price signals (Patalinghug, 1997).
Under the Aquino administration in 1986, most of the unfavorable economic policies were removed.
It was during this regime that foreign investment liberalization laws, such as the Foreign Investment
Act of 1991, were implemented. However, although there were a number of policy reforms, the
implementation was highly constrained by the lack of adequate financial resources.
During the Ramos administration starting 1992, the policy of less government intervention was
sustained. To promote competition and efficiency, the foreign exchange
Rivalry Among Established Companies: Medium Pressure
o Currently, there are three main incumbent companies that
exist in the same market as Wal-Mart: Sears, K Mart, and
Target. Target is the strongest of the three in relation to
retail.
o Target has experienced tremendous growth in their domestic
markets and have defined their niche quite effectively.
o Sears and K-Mart seem to be drifting and have not
challenged K-Mart in sometime.
o Mature industry life cycle.
The top three supermarkets in the country are SM Supermarket, Robinsons Supermarket
and Rustan Supermarket. These three accounted for 71% of the gross revenues of the
leading supermarkets in 2006 as listed in the Philippines' Top 1000 Corporations.
Table 2. Number of outlets of the top three players in the supermarket business
Company Name of supermarket No. of outlets
23
SM Supermarket 11
Supervalue Inc. SM Hypermarket 8
SaveMore
SM Supermarket
According to an industry report, supermarket sales including hypermarket sales account for more
than half of SM's retail sales.
Sensing the brewing competition posed by new foreign players, local retail firms are not to be
dislodged easily. SM Prime Holdings, Inc. (SMPH), the holding company for the SM chain of
department stores, whose earnings have been growing at a steady rate of 13 percent annually,
opened two more shopping malls last year. This year, three more shopping malls will be opened to
bring the total number of SM department stores to 15 nationwide. SM allots about P2.5 billion for
constructing new shopping malls every year.
The new Makro, now a member of the SM Group, offers a wide variety of fresh and affordable selections
to choose from. Groceries, fresh produce, electronics, appliances and school supplies are now available
in smaller packs. The whole family is welcome to enjoy more and better deals with its free membership
and parking, bills payment counter for the customers’ convenience. Their purchasing power is extended
now that all major credit cards are accepted. # Disclaimer
SM Corporate Offices, Building E, J.W. Diokno Boulevard, Mall of Asia Complex, Pasay City, 1300
Philippines
MAKRO stores are set up to allow customers to conveniently find what they need. It is divided
into Food (Fresh / Dry Food) and Dry Goods departments along spacious aisles. The Food
department is made up of a variety of Dry Foods and Fresh produce. The Dry Goods department
features an extensive assortment of appliances, audio and video equipment, house and office
furniture, office supplies and do-it-yourself products. MAKRO has its own product line of high
quality Food and Dry Goods product that are more affordably priced. ARO and SAVEPAK are
made up of high quality household durable and consumable goods. Q-BIZ offers excellent
stationery products and office supplies. ARO and SAVEPAK product managers source
consumables that provide high quality and better value for money. Currently around 485 articles
are registered under ARO and SAVEPAK trademark among them are fresh produce and dry
foods that are canned or packed from frozen foods to detergents and pet foods.
Makro is committed to providing customers with a steady supply of food and dry goods products
with the highest quality at the best price. For our dry foods and fresh produce, our supplies come
straight from the farms, plantations and manufacturing facilities everyday. Working closely with
our suppliers, guiding them with Marko’s strict standards, they have improved on their processes
and quality assurance. We assure our farmers and growers of their income by committing the
whole harvest while providing the logistics to transport the produce at the quickest possible time.
When you buy food item from us, they’re as fresh as they were harvested.
One of the largest chains of supermarkets in the country is Robinsons Supermarket Corporation
(RSC). It belongs to the JG Summit Holdings Inc.'s Robinsons Retail Group, which operates
Robinsons Department Store, Handyman Do It Best Center, Robinsons Appliances, Top Shop,
Dorothy Perkins, Wallis, Toys R Us, and True Value.
The first Robinsons Supermarket opened in Cebu in 1985. There are now 32 branches in various
parts of the country.
Robinsons Land Corp., the developer of 10 Robinsons shopping malls and Big R and Hypermart
supermarkets, is investing P3 billion to P4 billion in building seven new shopping malls within
the next 18 months.
There are also reports that Robinsons Land Corp. (RLC) is in talks with Prime Orion for the setting
up of a Big R warehouse in Tutuban Center. RLC operates three Big R Super Stores, which offer
warehouse-shopping retail/wholesale service, similar to Makro and S&R Price.
Uniwide Sales
Uniwide was established by the Gow family as a textile bargain house in January 1975.
Unbelievably low prices and excellent quality of goods attracted vast masses of
people to the Uniwide Sales Textile Bargain House Centre at the top floor of a major
bookstore in downtown Avenida, Manila. Tremendous success prodded the Gow family
to expand store's merchandise assortment to include ready-to-wear apparel, accessories,
houseware, appliances and groceries.Eventually, Uniwide became a complete
department store and supermarket chain with various strategically -located outlets.
Uniwide, upon registration with the Securities and Exchange Commission, became a full-
fledged corporation under the name Uniwide Sales, Inc. in 1983. Five years later, in
1988,the company introduced the "warehouse club" concept, a novel idea in the Philippine
retail industry The mass-oriented warehouse club concept, allows consumers to enjoy the
convenience of "one-floor shopping ." The low maintenance requirements of warehouse
clubs enables Uniwide to offer goods at the lowest prices. the first Uniwide warehouse Club
was put up in Libis, Quezon City in 1988. Owing to the enormous success of the
breakthrough concept, several other Uniwide warehouse clubs were opened at prime
locations within a couple of years. As testament to the triumph of Uniwide Sales, all of the
company's outlets secured a spot in the list of the Top Corporations in the Philippines
in 1990. In 1995, total sales reached 13 Billion or US$5 Billion. As the company embarked
on the development of more warehouse clubs as well as other commercial and residential
projects. The Uniwide Sales Realty and Resources Corporation (USSRC) was formed in
1989. To consolidate the real estate interests of the Gow family, the Uniwide
Holdings, Inc. (UHI) was incorporated in September 1994. UHI also serves as the
central franchisor of the system of operating Uniwide warehouse clubs and department
stores. Uniwide is committed to cooperate in nation-building by helping to diffuse
economic activities to the countryside. Uniwide resolves to establish more consumer-
oriented wholesale and retail businesses and build total communities throughout the
country.
Uniwide Stores provide consumers with the comforts of shopping in style while enjoying
the benefits of cost-competitive products. The company's stores are situated at prime
locations and carry a wide range of quality and affordable goods - grocery items, cosmetics,
toiletries, ready-to-wear apparel, shoes, bags, houseware, home decor, appliances, toys,
school and office supplies, hardware,cassette tapes and a whole more. Uniwide also
distributes an interesting variety of specialty items from household gadgets to assorted
food items to trendy clothing to high-tech toys and the most advanced appliances. The
Uniwide Warehouse Club offers the convenience of "one-floor shopping". Everything that
one could ever need can be found right there in a huge, one-floor, warehouse-typestore.
Puregold
Landmark
Hi-top Supermarkets
Unimart
Daily Supermarket
DEMAND CONDITIONS
The purchasing power of Filipino consumers has improved over
the last few years.
convenience in shopping
one-stop shop
They want a one-stop shop where they can buy most of the things they need in one trip.
While many Filipino consumers still shop at wet markets for fresh vegetables and meat,
many have shifted to supermarkets because of convenience. In wet markets, processed
products and other grocery items such as toiletries are not usually available. Even
if they are, the choices are limited. They prefer one-stop shopping to minimize
time and energy, even if they have to pay more.
Exclusivity of products
Imported items and certain supplier tie ups of supermarkets make them the only choice.
Sari-sari stores, on the other hand, sell limited items and do not carry perishable food such
as vegetables, fish, fruits, and meat. Supermarkets sell both perishable and nonperishable
items such as canned meat and vegetables and nonfood items.
Accessibility
Moreover, improved purchasing power has made consumers more mobile as many families
now own cars. Likewise, there has been a significant improvement in infrastructure
facilities and transportation systems, particularly in urban and suburban areas,
which have made shopping centers more accessible.
Shopwise offer free parking for a minimum purchase of 300p and free for their elite card
members.
Some supermarkets have also extended store hours to provide customers with longer time
shopping time. During weekends, some supermarkets also open earlier than usual.
Value consciousness-consumerism
Filipino consumers have also become value-conscious8 , not only due to higher income but
also due to higher educational attainments. Moreover, consumerism in the Philippines is
gaining some attention. The Department of Trade and Industry, together with consumer
groups, is educating consumers on their rights and how to get the
best value from their money and a high demand for convenience.
Return and exchange policy of supermarkets.
There is also a changing pattern in the way Filipino consumers pay their bills. The 5.6
percent growth in the trade sector in 2001 was supported by 34 percent increase in credit
card loans in the third quarter of the same year. In its latest report, the Central Bank said
credit card loans surged 34 percent to P43.5 billion (US$847 million) in the third quarter of
2001 from only P32.5 billion a year earlier. This, for one, indicates the evolving mode of
payment by Filipino consumers. The local retail industry is also following the global trend
of using an automated system in managing consumer needs. For example, food distribution
is increasingly becoming consumer driven, rather than producer-driven. The entry of
market research firms that monitor consumers’ buying habits and spending patterns is
pointing to retail companies’ desire to satisfy if not saturate the needs of Filipino
consumers.
In the Philippines, “sari-sari” stores dominate the retail market as they account about 70
percent of the total. “Sari-sari” store is defined as small grocery or convenient store that
serves the basic food and grocery essentials of the households. Sari-sari stores are usually
constructed as an extension of the owners’ house. Their dominance, especially in rural
areas, is due to geographical convenience, intimate customer service and payment
flexibility (Philippine Food and Beverage Retail industry: Opportunities for Canadian
Exporters, 2000).
While price remains the top consideration of poor Filipinos in purchasing products, this is
not necessarily true for the whole population. Filipinos are known for their penchant for
foreign-made goods, particularly those made from the United States. A number of American
middle-class brands have carved their niche in Philippine market, particularly among
richer Filipinos in Metro Manila and other urban areas. Typical markups for products are
estimated at 30 percent of invoice value. According to Philippine Retailers Association
(PRA), most non-food retail items carry a 20 percent to 30 percent profit margin.
Distributor Unilever Philippines Inc. is spending P1 billion in its expansion plans, as it reported a
double digit growth last year. Preliminary estimates placed Unilever’s sales at P24 billion last year,
up from around P20 billion in 2000. Unilever distributes leading home and personal care brands like
Sunsilk shampoo, Creamsilk hair conditioner, Close-Up toothpaste, Rexona deodorant, Surf
detergent powder, Pond's beauty products, Vaseline skin lotion, and Lifebuoy and Lux soap.
Supermarkets carry a wide array of products from food (fresh, packaged, canned) to non-food
items (household, personal care, etc.). Some formats (e.g. hypermarket, warehouse clubs) also
carry general merchandise (e.g. clothes, school supplies, etc.) and home appliances. The products
are sourced from local producers, traders and importers. Some supermarkets like Rustan's
directly import some of its products.
The large supermarkets also have their own private label products such as SM's Bonus, Rustan's
Sure Buy, Shopwise's Save Big and Robinson's Supersavers. Some also offer exclusive or unique
items to entice customers.
The intensifying competition in the market will also spur supermarkets to pursue more creative
approaches. Many supermarkets now offer value-added products and services such as bills
payment, courier services, photo developing, ticketing, cell card counters, among others. Further,
on-line grocering has been implemented for some time by large supermarkets but they have
stopped the service.
SUPPLY CONDITIONS
The majority of supermarkets in the Philippines have now installed point of sale (POS) scanner
systems. A few have sophisticated systems where the POS is integrated with the inventory
management system. A number of value-added networks (VANs) have been established and a
standard purchase message format has been adopted to operationalize the electronic data
interchange (EDI) (PASI 1995). This is a major breakthrough in retailing as retailers
can now automatically purchase from suppliers electronically through the system. Through an
effective computerized inventory management system, the lag between purchasing and
delivery time is not only greatly reduced but will also minimize inventory cost.
Unfortunately, this technology requires large capital outlay and is only feasible for large food
retailers who have access to credit. In the Philippines, large retailers have substantial
investments in banks. The SM Group, for example, owns Banco de Oro. Clearly, these
retailers have a competitive advantage over those who do not have a strong financial network.
The benefits of adopting this technology go beyond enhancing merchandise planning, control,
and market information systems.
Strategic partnerships
In the Philippines, large manufacturing companies such as Procter and Gamble are establishing
strategic partnerships with retailers via programs such as efficient consumer response. 9 The
main goal is to maximize manufacturers’ and retailers’ profits via better market information. In
this program, retailers and manufacturers jointly monitor and analyze sales behavior based on
various factors such as advertising, sales promotion, improved customer service, and so
on. Manufacturers have the incentive to establish strategic partnerships with retailers because
the latter, being closest to the consumer, have the most current market information, especially
with a POS system in place. This information is vital to product development, production
scheduling, and development of marketing strategies in general. However, based on the
experience of one large retailer in the country, it appears that manufacturers such as Procter and
Gamble prioritize retailers with sizeable market share, big potential for growth, and relatively
advanced management information systems. This is expected as the value of market
information is higher for retailers with substantial market share and bigger potential.
Otherwise, insights gained from market analysis would not be as useful if they were based on
an insignificant portion of the market. One of the essential elements for strategic partnerships to
work is a well-established information system. Procter and Gamble, for example, introduces
their program called SPACEMAN (space management) to improve retailers’ existing
merchandising systems by assisting them to effectively plan, evaluate, and monitor sales
and profitability particularly in allocating space to various brands for a certain product
category.
However, this situation is reversed in processed products as retailers source them from large
local and multinational firms, which may exert countervailing power
against retailers.
Retailers- moderate
- Due to availability of imported goods in
Because of the perishable nature of agricultural products and
inadequate infrastructure, farmers are unable to receive higher
prices. Their bargaining power is weakened relative to that of
traders, which include wholesalers and retailers, who have the
resources and better market information. However, this situation is
reversed in processed products as retailers source them from large
local and multinational firms, which may exert countervailing power
- against retailers.
RORO
Meat and dairy products, for instance, are highly differentiated, being dominated by brands of
large corporations such as San Miguel Corporation, the largest agribusiness firm in the
country. Food manufacturers aggressively promote their branded products through
advertising. A number of large food companies are vertically and horizontally integrated. The
largest, particularly San Miguel Corporation and Purefoods Corporation, operate their
own retail outlets for processed and unprocessed meat products.
On October 26, 1982, Philippine Seven Corp. (PSC) acquired the license agreement to
use the 7-Eleven Convenience Store system in the entire Philippines from Southland
Corporation of Dallas, Texas. After a month, PSC was registered with SEC on 29
November 1982. The incorporators were Jose T. Pardo, Vicente T. Paterno and Francisco
R. Sibal. The company’s chief mission was to introduce an entirely new retailing concept
to the Filipino consumers, i.e. operating a chain of 24-hours convenience stores. The first
corporate office was located at the ninth floor of the Century Tower building in Salcedo
Village, Makati City.
In July 1988, PSC transferred the Philippine area license to operate 7-Eleven stores to its
affiliate, Philippine Seven Properties Corporation ("PSPC"), together with some of its
store properties. In exchange thereof, PSC received 47% of PSPC stock as payment.
Concurrent with the transfer, PSC entered into a sublicensing agreement with PSPC to
operate 7-Eleven stores in Metro Manila and suburbs. As part of PSPC's main business, it
acquired or leased commercial properties and constructed retail store buildings, leasing
the buildings to PSC on long term basis together with most of the capital equipment used
for store operations. Hence, PSC concentrated on managing its stores and effectively took
the role of a pure retailer.
The option of using the Internet for shopping is also widely available in the country, given
the high incidenceof credit card ownership and easy access to the web. Philippine online
shopping websites have begun exploiting the potentials of e-commerce as early as 1998.
Not all of them had survived the competition though. Last year, AC Nielsen reported that
about four percent of Filipinos living in urban areas and seven percent of Metro Manila
residents have access to the Internet. This, of course, is relatively lower than the use of
Internet in otherAsian countries.
The option of using the Internet for shopping is also
widely available in the country, given the high incidence
of credit card ownership and easy access to the web.
Philippine online shopping websites have begun
exploiting the potentials of e-commerce as early as 1998.
Not all of them had survived the competition though. Last
year, AC Nielsen reported that about four percent of
Filipinos living in urban areas and seven percent of Metro
Manila residents have access to the Internet. This, of
course, is relatively lower than the use of Internet in other
Asian countries.
Underground Economy
Grocers could potentially enter into the retail side and become microenterprises that are not
covered by the census and surveys of establishments. These microenterprises constitute the
informal sector sometimes referred to as the ‘underground economy.’ This indicates that the
retail trade sector might have served as an alternative source of employment for a number of
individuals thereby alleviating unemployment. Anecdotal evidence shows that many self-
employed and unemployed individuals venture into retailing and set up their own
sari-sari stores.This is primarily due to the ease of entry into this
type of business, which requires minimum capital and skills. A number of unemployed
individuals also sell goods in wet market stalls or join the ranks of sidewalk vendors.
Sari-sari in Filipino means variety. They are family-owned neighborhood stores selling a
variety of food and nonfood items. Moreover, the retail sector is also a major source of
employment for part-time workers, particularly students. There are many families in the
countryside who depend on retailing as an alternative source of livelihood to augment their
income. Farm produce is brought to public markets and sold to wholesalers and retailers, or
marketed directly to consumers. Since farm produce is an input to retail food production, the
well-being of the agricultural sector depends significantly on the performance
of the retail industry. Finally, retailing is also an integral component of Filipinos’ culture. It
reflects the free enterprise system in action, where individuals are able to sell their goods
outside churches, schools, theaters, and even outside large retailers where customer traffic is
high, with minimal if any restrictions Finally, while there appear to be minimal regulations in
terms of entry to public wet markets or in operating a small family store, the retail industry is
open only to Filipino investors. However, as discussed below, there is a move to open the sector
to foreign investors.
6 Based on a survey conducted in 1996 by one of the large food retailers in the Philippines.
However, a survey by Labra et al. (1995) in 1993 showed that about 94 percent of the
consumers
interviewed patronized sari-sari stores for food and nonfood items, and only 22 percent
patronized supermarkets. This survey, however, did not cover the amount of money spent
on these retail outlets.
7 They are medium-size stores selling a greater variety of food products and at least three
times the size of sari-sari stores. Convenience stores are similar to sari-sari stores and
grocery
stores, as they are small in size and sell a variety of goods such as food, school supplies and
toiletries, although they mainly cater to high-income consumers.
DIGAL : Retail Food Industry 21
anecdotal evidence, sari-sari stores mainly target consumers who
buy their groceries on a daily basis and often on credit due to limited
cash.
In the Philippines, “sari-sari” stores dominate the retail market as they account about 70
percent of the total. “Sari-sari” store is defined as small grocery or convenient store that
serves the basic food and grocery essentials of the households. Sari-sari stores are usually
constructed as an extension of the owners’ house. Their dominance, especially in rural
areas, is due to geographical convenience, intimate customer service and payment
flexibility (Philippine Food and Beverage Retail industry: Opportunities for Canadian
Exporters, 2000).
Complementors: Low pressure
o One complementor that exists for Wal-Mart is Sam’s Wholesale
Clubs. Although the same company owns this, it complements Wal-
Mart by offering the same products in wholesale form, making the
company more profitable.
o Suppliers of goods need to have innovative products to attract
customers.
o For the most part, complementors do not affect Wal-Mart’s business
model.
Rustan Supermarket
Another leading supermarket in the country is Rustan Supermarket, which is now operated by
Rustan Supercenters Inc. after it assumed the management and operations of Rustan
Supermarkets Inc. in 2006. Rustan Supercenter also operates the chain of Shopwise supercenters,
the premier supercenter in the country which offers fresh goods, groceries, clothes, toys, home
items, all under one roof. Rustan Supercenter is a division of Rustan Commercial Corporation
(RCC), a member of the Rustan Group of Companies, which is into the business of department
stores and food, specifically, coffee shops, being the local franchisee of Starbucks Coffee.
The very first Rustan Supermarket opened in 1970 in Makati. Today, there are 22 branches, mostly
located in Metro Manila. Meanwhile, Shopwise first opened its doors in Alabang in 1998 and now has
five outlets
MANILA, Philippines – When Shopwise opened in Alabang, its maiden store in its growing chain of
hypermarkets, 10 years ago, shoppers were just so happy to discover — at long last — a one-stop
shopping destination that’s got practically everything they needed, from fresh items to dry goods. And
now, assorted hordes of loyal shoppers are rediscovering an even fresher, more exhilarating, and more
mouthwatering Shopwise Alabang.
I must confess that I was one of the first shoppers who eagerly waited outside Shopwise Alabang when
it first opened its doors one November morning in 1998. I was simply awed by the well-lighted aisles
that were so wide you could skateboard through them, the near-impeccable layout of the shelves, the
careful and thoughtful arrangement of the products, the great variety of merchandise, and not to forget,
the very courteous service. Surely, Shopwise puts the “super” in the supermarket.
And here’s even fresher news. “We’ve renovated the store and strengthened a lot of areas like the
produce or fresh section,” says George Anthony Domingo, store manager. “We tried to combine all the
fruits and vegetables for the produce, and the ice creams, yogurts, and cheeses for the dairy section.”
Oui, Le Gourmet, a restaurant with a French twist, opened at Shopwise Alabang just last year. Now, you
can dine and wine like the French. Shopwise Alabang gets fresher and Frenchier with its new assortment
of products flown in straight from France by the company Belle France.
It can’t get any Frenchier than this: Belle France flies in hundreds of French products to Shopwise
Alabang which include, hold your breath now: muesli, cereals, cornflakes, baking powder, marmalades,
pate, duck terrine, cassoulet (white bean stew with meat), sausages and lentils, ready-to-fry and enjoy
confit de canard (cured duck meat poached in its own fat), ratatouille, turkey, chicken, veal,
cheeseburger, lasagna, pizza, frozen paella, couscous, soup, mayonnaise, vinegar, olive oil, coffee, coffee
filter, tea, quiche lorraine, cookies, ready-to-bake cakes, crepes, chocolates, peanuts, ice cream, ice
cream cakes, and of course, french fries.
With all the French ingredients and condiments available, you can whip up a gourmet feast at home and
imagine you’re dining in a bistro in Paris.
Cassou what? Fret not — just because you can’t pronounce these tongue-twisting French names doesn’t
mean you can’t afford them. George assures shoppers, “Since we get our products straight from the
producers without having to pass through middlemen, our French products are 40-percent cheaper than
comparable brands.”
Did we forget something? Of course, there are the French wines. “People know that when it comes to
wine, the French are superior so they can never go wrong with French wines,” says wine lover Frances
Yu, VP-marketing, Rustan’s Supercenters, Inc. “A lot of times, our wines, especially the French wines, are
50-percent cheaper. Our Bordeaux, for instance, is only P385 and it’s a good wine you won’t be
ashamed to give to a friend.”
The Vineyard promises to be the toast of the town. “We have a nice Chilean table wine that’s only
P195,” Frances tells us as she walks us through The Vineyard of Shopwise Alabang. “During our store
anniversary, we had a buy-one-take-one promo for cabernet sauvignon and merlot for only P195.”
“And our wines are kept at a temperature-controlled room (21°C) 24/7 to keep the quality of the wines,”
George reveals.
The Vineyard houses an intoxicating selection of wines from different parts of the world like the US,
Australia, Chile, Spain, Italy, and South Africa. They range in price from less than P200 to over P2,000 for
the champagnes that would cost twice as much in other wine stores. For instance, a Veuve Chabert,
which normally costs P3,000 plus, sells for only P2,185 at The Vineyard.
Frances notes, “People think of Shopwise as a place for one-stop shopping for all their basic needs. What
they don’t know is that there are a lot of items here, which we call fine finds, or exciting products from
all over the world that are offered at very affordable prices. For example, Le Gourmet is like a specialty
store within a store. You don’t have to go to a specialty store to get your special sausages, imported
cheeses, Spanish hams, etc. And we have a lot of products that have no comparison — we’re the
exclusive distributor in the Philippines of Belle France products.”
Shopwise carries other imported labels from other parts of the world like the US (Springfield, among
others), available at prices that are 40-percent lower than national brands.
“We’re also developing an imported frozen aisle where we have Wagyu, Aussie beef, etc.,” George
shares more beefy news.
Surely fast sellers are the products in the Sure Buy section. Says Frances, “We don’t have just affordable
imported products, we also have Sure Buy for those who are on a budget, actually for everybody
because who isn’t cost-conscious these days? It’s our private label that includes products from paper to
plastic to food. This brand is about 20-percent cheaper than the leading national brands, but they’re of
comparable quality. This is something you really want to look at in times of economic crisis like now.”
Shopwise’s smart shoppers also save big during the store’s 10-day promo held twice a month. “The
promo features anywhere from 500 to 1,000 products on sale at up to 70-percent off,” says Frances.
Shopwise has something for the health-conscious, too and it’s called Simply Healthy, where high on the
list of favorites are the organic, sugar-free, low-fat, and low-carb items.
What else is cooking, or should we say baking, at Shopwise? But of course, the breads and pastries that
are baked in the store that’s got two giant ovens! “We bake not just in the morning but three times a
day so that whatever time of the day you drop by, you can get your breads hot and fresh,” says George,
a walking encyclopedia of Shopwise facts and figures. “We’re baking some 1,800 pieces of bread a day.”
You’ll just love (as much as we do) the crusty oatie bread, multi-grain bread, pork/chicken empanada,
whole wheat mini baguette, pizza baguette, hotdog in a bun, ham bread, tuna pan de sal, asado pan de
sal, corned beef pan de sal, cream of chicken pan de sal, bread pudding, coffee/raisin bun,
ham/pineapple roll, onion/bacon roll, open garlic bread, tuna turnover, mushroom turnover, creamy
cheese delight, potato curry delight, walnut pie, apple strudel, and the list goes on and on.
A lot of the dough-licious bread/pastry recipes come from Divina Couvreaux, wife of Christian
Couvreaux, chief operating officer of Rustan’s Supercenters, Inc. The couple shares a passion for good
food.
For those on the go (and who isn’t in these frying, er, trying times?), there’s food-to-go at Shopwise.
Bring home or to the office a roast pork belly or a chicken a la kiev or a cream dory, for instance, and
you’ve got your instant lunch or dinner. Bon appetit!
And for homemakers, don’t just sit there. Head off to the new furniture section of Shopwise Alabang,
where a lot of items are now on sale. For instance, there’s a buy-one-take-one promo on the
comforters.
“Here, we have combined all the rugs, carpets, and ready-to-assemble, or what we call RTA, items,”
George enumerates. “We have our hardware section, electricals, appliances, and home decor. And soon,
we’ll be carrying cell phones, too, in our gadgets section.”
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