Supermarkets in the Philippines

Euromonitor International
March 2020
SUPERMARKETS IN THE PHILIPPINES Passport i

LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Steady Growth Driven by Expansion Beyond Metro Manila ..................................................... 1
More Transactions and Larger Basket Sizes ............................................................................ 1
Rival Formats Pose Threat in Urban Areas .............................................................................. 1
Competitive Landscape ................................................................................................................ 2
Sm Retail Maintains Lead As It Expands in Rural Areas .......................................................... 2
Robinsons Working To Rationalise and Reorganise Following Acquisition .............................. 2
Newcomer Targets Significant Expansion ................................................................................ 2
Channel Data ............................................................................................................................... 2
Table 1 Supermarkets: Value Sales, Outlets and Selling Space 2014-2019 ............. 2
Table 2 Supermarkets: Value Sales, Outlets and Selling Space: % Growth
2014-2019 .................................................................................................... 2
Table 3 Supermarkets GBO Company Shares: % Value 2015-2019 ........................ 3
Table 4 Supermarkets GBN Brand Shares: % Value 2016-2019 .............................. 3
Table 5 Supermarkets LBN Brand Shares: Outlets 2016-2019 ................................. 4
Table 6 Supermarkets LBN Brand Shares: Selling Space 2016-2019 ...................... 5
Table 7 Supermarkets Forecasts: Value Sales, Outlets and Selling Space
2019-2024 .................................................................................................... 6
Table 8 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2019-2024 ....................................................................................... 6

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SUPERMARKETS IN THE
PHILIPPINES
HEADLINES
▪ Supermarkets sees 7% current value growth in 2019 to reach PHP539.9 billion
▪ Supermarkets loses share to rival channels, particularly convenience stores
▪ SM Retail is the leading player in 2019, with a 21% value share
▪ Supermarkets is forecast to see a 6% current value CAGR (3% at constant 2019 prices) over
2019-2024

PROSPECTS

Steady Growth Driven by Expansion Beyond Metro Manila

Supermarkets saw steady growth throughout the review period. While it has faced intensifying
competition from other retail formats, the supermarkets channel has benefited from rising
purchasing power amongst Filipino consumers. In common with other modern retailing formats,
supermarkets is seeing growth driven primarily by expansion outside Metro Manila.
Nonetheless, smaller supermarket formats, such as SM’s Save More Supermarket and
Puregold’s supermarket continue to penetrate communities in urban neighbourhoods.

More Transactions and Larger Basket Sizes

According to the Philippine Statistics Authority's annual household consumption expenditure
report, total household expenditure grew in 2018 despite a climbing inflation rate. Moreover,
grocery staples featured amongst the fastest growing areas of expenditure by Filipinos towards
the end of the review period. This is directly benefiting supermarkets as modern retailing formats
continue to expand throughout the country. The growth in expenditure was bolstered by the
reduction in personal income tax introduced in 2018, which boosted Filipino consumers’
purchasing power. Major player, Robinsons, noted an increase in both the number of
transactions and basket size, while SM Retail reported that shopper-orientated promotions, such
as bundled items, and expansion in urban and rural areas attracted new customers with
increased transactions and larger basket sizes.

Rival Formats Pose Threat in Urban Areas

Other grocery formats are expanding at a faster rate than supermarkets, especially
convenience stores. Larger convenience stores/minimarts represent a particularly notable threat
to supermarkets. Alfamart is prominent in this minimart segment, effectively functioning as a
mini-supermarket with an offer that is similar to, albeit smaller than, a conventional supermarket.
Supermarket staples such as basic goods, fresh meat, poultry and vegetables all feature in
Alfamart’s product range. However, its location within neighbourhood communities and its rapid
expansion are modelled after a convenience store. Awareness of the growing threat
represented by such formats is encouraging supermarkets to turn the attention of their
expansion strategies to rural communities. Despite showing slower growth than other formats,
supermarkets remains the largest grocery format in terms of value. Moreover, supermarkets is
set to continue to grow both in terms of outlet numbers and value during the forecast period.

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COMPETITIVE LANDSCAPE

Sm Retail Maintains Lead As It Expands in Rural Areas

The leading operator in supermarkets, SM Retail Inc, collectively names its
supermarket/hypermarket formats the SM Markets. These include SM Supermarket, Save More
Supermarket and SM Hypermarket. SM Supermarket and Save More Supermarket ranked first
and third, respectively, in the supermarkets channel in 2019. The SM Markets saw expansion in
rural areas make an important contribution to growth towards the end of the review period. In
2018, Save More signed a 10 year contract with shopping centre developer, DoubleDragon
Properties Corporation, for the opening of 22 Save More Supermarkets in branches of CityMall.

Robinsons Working To Rationalise and Reorganise Following

Acquisition
Prior to the acquisition of Rustan’s Supercenters Inc, Robinsons Retail Holdings supermarket
brands included Robinsons Supermarket, Robinsons Selection and Robinsons Easymart. The
acquisition brought Rustan’s Supermarket, The Marketplace, Wellcome and Shopwise Express
into Robinsons’ portfolio. Robinsons also operates a cash and carry format called Jaynith’s
Supermart.
In 2019, RRHI worked to rationalise Rustan’s Supercenters’ store network. Eventually, the
company will review its brands and determine which of the multiple brands under the same
formats and models will survive. For example, the company is expected to opt for a single brand
to cover its premium supermarket operations, which currently include both the Robinsons
Selection and The Marketplace brands.

Newcomer Targets Significant Expansion

DoubleDragon Properties Corp has successfully grown its shopping centre brand, CityMall,
during the past few years and, in 2019, it officially entered the modern grocery retailing segment
with the launch of a new supermarket brand, MerryMart Grocery Center. The company plans to
roll out a total of 1,200 outlets nationwide by 2030, while also aiming to reach PHP120 billion in
systemwide sales within 12 years. MerryMart’s expansion strategy also includes plans for
traditional grocery stores to be converted into modern retail outlets while current operators retain
ownership as franchisees of MerryMart.

CHANNEL DATA
Table 1 Supermarkets: Value Sales, Outlets and Selling Space 2014-2019

2014 2015 2016 2017 2018 2019

Value sales PHP bn 391.4 421.5 454.4 478.2 505.6 539.9

Outlets '000 1.7 1.8 1.8 1.9 2.1 2.1
Selling Space mn sq m 2.4 2.7 2.9 3.1 3.3 3.6
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 2 Supermarkets: Value Sales, Outlets and Selling Space: % Growth 2014-2019

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% growth
2018/19 2014-19 CAGR 2014/19 Total

Value sales PHP million 6.8 6.6 38.0

Outlets 4.2 5.2 28.8
Selling Space '000 sq m 7.4 7.9 46.1
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 3 Supermarkets GBO Company Shares: % Value 2015-2019

% retail value rsp excl sales tax

Company 2015 2016 2017 2018 2019

SM Retail Inc 22.4 22.8 23.2 24.0 24.5

Robinsons Retail 10.3 10.7 10.9 15.5 16.4
Holdings Inc
Puregold Price Club Inc 3.1 3.5 3.6 3.6 3.5
Metro Retail Stores Group 3.4 3.3 3.2 2.7 2.8
Gaisano Grand Group of 1.9 1.9 2.0 2.0 2.1
Cos
New City Commercial Corp 1.7 1.6 1.6 1.7 1.7
Gaisano Capital Group 1.3 1.2 1.1 1.2 1.2
Prince Warehouse Club Inc 0.3 0.7 0.8 0.8 0.8
MBV Group of Cos - 0.4 0.6 0.6 0.6
Liberty Commerical 0.5 0.5 0.5 0.5 0.5
Center Inc
Landmark Corp, The 0.4 0.4 0.4 0.4 0.4
Ultra Mega Wholesale & 0.5 0.4 0.4 0.4 0.4
Retail Mart
DSG Sons Group Inc 0.3 0.4 0.4 0.4 0.4
Unitop General 0.2 0.2 0.2 0.2 0.2
Merchandise Inc
Gaisano Northern 0.3 0.3 0.2 0.2 0.2
Mindanao (Unipace Corp)
City Supermarket Inc 0.1 0.1 0.2 0.2 0.2
CVC Supermart Inc 0.1 0.1 0.1 0.1 0.1
JHG Trading Inc (JS 0.1 0.1 0.1 0.1 0.1
Gaisano)
Magic Group of Cos 0.1 0.1 0.1 0.1 0.1
Lopue's Supermarket 0.2 0.2 0.0 0.0 0.0
Rustan Group of Cos 3.6 3.5 3.9 - -
Others 49.1 47.5 46.3 45.2 43.8
Total 100.0 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 4 Supermarkets GBN Brand Shares: % Value 2016-2019

% retail value rsp excl sales tax

Brand Company (GBO) 2016 2017 2018 2019

Robinsons Robinsons Retail 10.7 10.9 11.7 12.7

Holdings Inc
SM Supermarket SM Retail Inc 10.7 10.8 11.1 11.3
Save More Supermarket SM Retail Inc 9.0 9.4 9.8 9.9

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Puregold Puregold Price Club Inc 3.5 3.6 3.6 3.5

Waltermart SM Retail Inc 3.1 3.0 3.1 3.2
Supermarket
Metro Supermarket Metro Retail Stores Group 3.3 3.2 2.7 2.8
Rustan Robinsons Retail - - 2.4 2.3
Holdings Inc
Gaisano Grand Mall Gaisano Grand Group of Cos 1.9 2.0 2.0 2.1
NCCC New City Commercial Corp 1.6 1.6 1.7 1.7
Gaisano Capital Gaisano Capital Group 1.2 1.1 1.2 1.2
Prince Town Prince Warehouse Club Inc 0.7 0.8 0.8 0.8
Marketplace Robinsons Retail - - 0.6 0.6
Holdings Inc
Wellcome Robinsons Retail - - 0.6 0.6
Holdings Inc
AllDay Supermarket MBV Group of Cos 0.4 0.6 0.6 0.6
LCC Liberty Commerical 0.5 0.5 0.5 0.5
Center Inc
Landmark Landmark Corp, The 0.4 0.4 0.4 0.4
Ultra Mega Ultra Mega Wholesale & 0.4 0.4 0.4 0.4
Supermarket Retail Mart
GMarket DSG Sons Group Inc 0.4 0.4 0.4 0.4
Unitop Unitop General 0.2 0.2 0.2 0.2
Merchandise Inc
Gaisano City Gaisano Northern 0.3 0.2 0.2 0.2
Mindanao (Unipace Corp)
Rustan Rustan Group of Cos 2.5 2.6 - -
Wellcome Rustan Group of Cos 0.5 0.6 - -
Marketplace Rustan Group of Cos 0.5 0.5 - -
Others 48.1 46.9 45.8 44.4
Total 100.0 100.0 100.0 100.0
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 5 Supermarkets LBN Brand Shares: Outlets 2016-2019

sites/outlets
Brand (GBO) Company (NBO) 2016 2017 2018 2019

Save More Supermarket SM Retail Inc 156 181 195 203

Robinsons Supermarket Robinsons Retail 117 129 136 148
Holdings Inc
Puregold Puregold Price Club Inc 100 103 104 106
SM Supermarket SM Retail Inc 48 52 56 59
Waltermart Waltermart Supermarket 39 46 52 53
Supermarket (SM Inc
Retail Inc)
Gaisano Capital Gaisano Capital Group 41 41 44 46
Supermarket
Gaisano Grand Mall Gaisano Grand Group of 32 35 39 40
Supermarket Cos
LCC Supermarket Liberty Commerical 25 29 32 33
Center Inc
Metro Supermarket Metro Retail Stores Group 25 26 28 32
Unitop Supermarket Unitop General 27 28 29 29
Merchandise Inc
LCC Expressmart Liberty Commerical 18 19 22 25
Center Inc
NCCC Choice Mart New City Commercial Corp 12 13 18 25
Robinsons Easymart Robinsons Retail 17 19 22 24

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Holdings Inc
Shopwise Express Robinsons Retail - - - 22
Holdings Inc
Magic Supermarket Magic Group of Cos 19 19 20 21
Rustan's Supermarket Robinsons Retail - - - 21
Holdings Inc
Ultra Mega Ultra Mega Wholesale & 18 19 19 20
Supermarket Retail Mart
NCCC Supermarket New City Commercial Corp 12 13 18 20
AllDay Supermarket All Value Holdings Corp 5 13 14 17
(MBV Group of Cos)
Wellcome Robinsons Retail - - - 17
Holdings Inc
Rustan's Supermarket Rustan Group of Cos 24 22 - -
Wellcome Rustan Group of Cos 17 17 - -
Others Others 1,080 1,109 1,206 1,179
Total Total 1,832 1,933 2,054 2,140
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 6 Supermarkets LBN Brand Shares: Selling Space 2016-2019

selling space '000 sq m

Brand (GBO) Company (NBO) 2016 2017 2018 2019

Save More Supermarket SM Retail Inc 463.7 506.8 531.3 542.2

SM Supermarket SM Retail Inc 331.3 345.6 357.1 368.8
Robinsons Supermarket Robinsons Retail 220.0 242.5 277.2 301.6
Holdings Inc
Waltermart Waltermart Supermarket 112.0 125.6 144.8 149.0
Supermarket (SM Inc
Retail Inc)
Gaisano Grand Mall Gaisano Grand Group of 64.0 69.1 75.5 76.7
Supermarket Cos
Puregold Puregold Price Club Inc 77.6 77.5 74.5 72.3
Rustan's Supermarket Robinsons Retail - - - 58.0
Holdings Inc
Metro Supermarket Metro Retail Stores Group 43.4 44.5 46.4 52.5
Ultra Mega Ultra Mega Wholesale & 45.0 47.5 47.5 49.5
Supermarket Retail Mart
Robinsons Easymart Robinsons Retail 32.0 35.7 44.8 48.9
Holdings Inc
LCC Supermarket Liberty Commerical 37.5 41.3 44.6 45.6
Center Inc
Marketplace Robinsons Retail - - - 38.7
Holdings Inc
Magic Supermarket Magic Group of Cos 34.2 34.2 34.3 35.6
NCCC Supermarket New City Commercial Corp 18.2 19.7 26.7 29.1
LCC Expressmart Liberty Commerical 18.0 19.0 21.8 24.5
Center Inc
Landmark Supermart Landmark Corp, The 15.0 18.2 18.2 24.0
Prince Town Prince Warehouse Club Inc 22.0 19.1 21.3 23.4
Unitop Supermarket Unitop General 21.6 22.4 23.1 23.1
Merchandise Inc
AllDay Supermarket All Value Holdings Corp 16.0 17.6 19.0 22.8
(MBV Group of Cos)
City Supermarket City Supermarket Inc 18.0 19.8 21.0 22.2
Rustan's Supermarket Rustan Group of Cos 68.2 62.5 - -
Wellcome Rustan Group of Cos 19.3 19.3 - -

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Others Others 1,180.6 1,286.9 1,487.6 1,554.9

Total Total 2,857.7 3,074.9 3,316.6 3,563.5
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 7 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2019-2024

2019 2020 2021 2022 2023 2024

Value sales PHP bn 539.9 555.2 570.7 586.5 603.5 621.9

Outlets '000 2.1 2.2 2.3 2.4 2.5 2.6
Selling Space mn sq m 3.6 3.8 4.1 4.4 4.7 5.1
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.

Table 8 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth
2019-2024

% growth
2019/20 2019-24 CAGR 2019/24 Total

Value sales PHP million 2.8 2.9 15.2

Outlets 4.1 4.2 22.8
Selling Space '000 sq m 7.4 7.5 43.5
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.

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