HYPERMARKETS and supermarkets appear to be losing money as Filipinos looking to buy essentials such as packaged groceries, toiletries and other consumables are choosing to go to smaller, more nearby stores to cut costs, according to the local arm of analytics firm Kantar. said.
In an online presentation, Kantar Philippines director of consumer research Loris Obana said that in order to adapt to inflationary times, Filipinos have become more discriminating in their choices when it comes to fast-moving consumer goods (FMCG).
FCMGs, also known as packaged consumer goods, are products that sell quickly at a relatively low price. They have a short shelf life due to high consumer demand or perishable products. Items in this category include beverages such as soft drinks, fresh/frozen meats and vegetables, dairy products, breads and other baked goods, cleaning products, and over-the-counter medications such as pain relievers.
“Filipinos are betting on value. While value can be as simple as cheaper goods or paying less for the same quantity, other factors such as rising gas prices, traffic jams, and inconvenient modes of transport redefine value in more comprehensive terms. comes shopping,” Obana said.
In terms of packaged goods in general, shoppers were encouraged to cope with rising prices by being more open to lower-priced brands. To some extent, they also take into account where to shop.
Hypermarkets, which combine the experience of supermarkets and department stores, as well as supermarkets, are reportedly under some pressure as most economically stressed Filipinos buy their daily necessities from small convenience stores.
This year, 41 percent of FMCG purchases are made at local sari-sari (variety) stores, up 6 percent from 2020, according to Kantar. At the same time, the share of hypermarkets and supermarkets decreased from 6% to 28% from 34% over the same period.
“Today, with multiple retailers and channel options available, customers can easily adapt to what best suits their budget and lifestyle, which suits their needs at the moment,” Obana said.
“Filipino shoppers are picky about the choices they make when it comes to their channel and retail store. Providing value in the form of rewards, lower prices or promotions is a given. Convenience or ease of access and availability of options are also important factors. which buyers are now considering,” she added.