Supermarkets in the Philippines

Euromonitor International
March 2023
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LIST OF CONTENTS AND TABLES

KEY DATA FINDINGS.................................................................................................................. 1
2022 DEVELOPMENTS ............................................................................................................... 1
Strong growth at supermarkets amidst inflationary pressures .................................................. 1
SM Retail remains the leading player in supermarkets ............................................................. 1
E-commerce becoming more important in the supermarket channel ........................................ 1
PROSPECTS AND OPPORTUNITIES......................................................................................... 2
Positive forecast period performance expected for supermarkets ............................................ 2
E-commerce will become the norm........................................................................................... 2
Partnership with suppliers will continue to be key ..................................................................... 2
CHANNEL DATA .......................................................................................................................... 3
Table 1 Supermarkets: Value Sales, Outlets and Selling Space 2017-2022 ............. 3
Table 2 Supermarkets: Value Sales, Outlets and Selling Space: % Growth
2017-2022 .................................................................................................... 3
Table 3 Supermarkets GBO Company Shares: % Value 2018-2022 ........................ 3
Table 4 Supermarkets GBN Brand Shares: % Value 2019-2022 .............................. 4
Table 5 Supermarkets LBN Brand Shares: Outlets 2019-2022 ................................. 4
Table 6 Supermarkets Forecasts: Value Sales, Outlets and Selling Space
2022-2027 .................................................................................................... 5
Table 7 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2022-2027 ....................................................................................... 5

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SUPERMARKETS IN THE
PHILIPPINES
KEY DATA FINDINGS
▪ Retail value sales increase by 15% in current terms in 2022 to PHP596 billion
▪ SM Retail Inc is the leading player in 2022, with a retail value share of 21%
▪ Retail sales are set to grow at a current value CAGR of 8% (2022 constant value CAGR of
5%) over the forecast period to PHP888 billion

2022 DEVELOPMENTS

Strong growth at supermarkets amidst inflationary pressures

The easing of COVID-19 restrictions and the subsequent higher foot traffic in malls and retail
establishments helped drive strong growth in the supermarkets channel in 2022. As more
workers returned to urban centres for work, there is more mobility in areas where most of the
supermarkets are located, thus enabling strong gains for this retail channel in 2022. For a
modern retail channel like supermarkets, getting foot traffic back due to increased mobility has
been key to recovery.
However, 2022 has not been free from challenges, as there was a problem with rising
inflation, although shoppers exhibited robust spending when they found value in offerings. In
addition, alongside the inflationary pressures, there was also a slight rise in disposable incomes.
Players also adapted to inflationary pressures by improving assortments of items in stores by
offering alternative brands or smaller pack sizes, which is a good fit for shoppers with different
budgetary constraints. AllDay Supermarket responded to market pressures through innovation,
as it offered smart carts to enhance the shopping experience of consumers returning to physical
stores. Other value creation seen in 2022 was the partnership between supermarkets and
manufacturers, as in the case of the tie-up between NCCC Supermarket and Unilever
Philippines in the Plastic SWAPapremyo plastic waste reduction campaign.

SM Retail remains the leading player in supermarkets

SM Retail continued to lead the supermarkets channel, thanks to its brand equity and
nationwide network. With brands with different store formats such as SM Supermarket, Save
More Supermarket and Waltermart Supermarket, the company registered more revenues with
its use of social media marketing for in-store promotions. The flexibility of SM Retail when it
comes to having different store formats and sizes with its various retail banners contributed to its
sustained leadership position in 2022. SM Retail also ramped up its e-commerce operations
with SM Markets as items sold in SM Supermarket and Save More Supermarket could be
quickly and easily purchased online. Shoppers on SM Markets’ online platform can choose
between same-day delivery or pick-up. There are also exclusive online promotions in the form of
discounts that encourage shoppers to use SM Markets in their grocery shopping. SM Markets
thus helps cement SM Retail’s leading position with its omnichannel strategy.

E-commerce becoming more important in the supermarket channel

Aside from SM Retail, other players in the supermarkets channel have also been expanding
their e-commerce operations. For example, Puregold’s official website allows shoppers to order

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grocery items and have them delivered. The retail giant also maintained its positive ties with e-
commerce marketplaces like Lazada and Shopee, which, in turn, enabled the company to reach
more consumers not opting for physical grocery shopping. Using digital platforms to shop for
supermarket items became more about making promotions exclusive. As an example of
exclusive deals, Puregold empowers sari-sari store owners with its Aling Puring app, which has
exclusive deals and promotions for its members.
Robinsons Retail Holdings also significantly strengthened its efforts in its e-commerce
expansion. Through Robinsons Supermarket by GoCart, shoppers of Robinsons Easycart and
Robinsons Supermarket can conveniently access products and exclusive deals using an app or
online version of the store. The digitalisation of Robinsons Retail Holding improved delivery of
essential goods during the pandemic, with the functionality of this e-commerce capability
continuing to be extended in 2022.

PROSPECTS AND OPPORTUNITIES

Positive forecast period performance expected for supermarkets

As supermarket players such as Puregold Price Club, Robinsons Retail Holdings, SM Retail
and others are expected to expand their footprints over the forecast period, continued growth in
the channel is expected. In spite of the growth of e-commerce in the supermarkets channel, the
majority of consumers will still prefer going to physical supermarkets to choose their products in
person. The prospect of achieving sustainable growth is drawn from supermarket players having
expansion plans for the forecast period, which will further improve the accessibility of such
stores nationwide. The more expansive a retailer’s footprint is, the greater the accessibility from
the standpoint of shoppers. However, innovative strategies to lure shoppers to stores could also
help drive growth, for example as AllDay Supermarket is doing by making use of “smart carts” to
make it easier to shop in physical stores.

E-commerce will become the norm

Consumers are seeking convenience when they shop for grocery items, which makes e-
commerce something that will likely become the norm in the coming years, regardless of the
size of the retail company. Following the development of the e-commerce operations at
Puregold, Robinsons and SM, smaller players operating in the supermarket space will likely also
be increasingly adopting technological changes. This strategy will not only ensure that it
increases growth prospects for their retail outlets, but it also helps with tapping into the segment
of younger, more connected consumers. The influence of e-commerce in shaping consumer
shifts in supermarkets has gone beyond just being a bump in demand due to the COVID-19
pandemic, which makes it imperative for retailers to grow their capabilities in e-commerce
beyond being present on marketplaces like Lazada and Shopee. For example, having a robust
e-commerce operation also necessitates investing in an effective delivery system as consumers
seek an increasingly seamless shopping experience.

Partnership with suppliers will continue to be key

In light of the positive forecast for the supermarkets channel, there are greater concerns for
cost efficiency that will enable incumbent players to manage costs and protect their margins.
The demand for essential goods is also coupled with affordability, even when there are
inflationary pressures, which creates price wars in supermarkets. Tighter controls are
anticipated when it comes to limiting the influence of middlemen in the supermarkets channel,
which will see supermarkets, particularly those operating on a smaller scale, having close ties

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with producers and suppliers. This should help supermarkets to be able to continue to offer
consumers affordable prices.
The partnership with suppliers also has a potential benefit for supermarket operators in terms
of tackling sustainability. The COVID-19 pandemic has made it challenging for retailers to have
robust growth in multiple channels, although value can also be generated when a retailer is able
to tackle social responsibility issues such as sustainability with the help of its supplier partners.
The improvement in collaboration has a positive carryover for a supermarket’s supply chain,
while also forging partnerships between a supermarket and manufacturer in offering
sustainability programmes.

CHANNEL DATA
Table 1 Supermarkets: Value Sales, Outlets and Selling Space 2017-2022

2017 2018 2019 2020 2021 2022

Value sales PHP million 478,152.7 503,957.3 528,784.5 555,150.4 516,560.5 595,840.0
Outlets 1,933.0 2,054.0 2,146.0 2,226.0 2,335.0 2,432.0
Selling Space '000 sq m 3,074.9 3,316.6 3,450.8 3,538.1 3,752.3 4,002.3
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 2017-2022

% growth
2021/22 2017-22 CAGR 2017/22 Total

Value sales PHP million 15.3 4.5 24.6

Outlets 4.2 4.7 25.8
Selling Space '000 sq m 6.7 5.4 30.2
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 3 Supermarkets GBO Company Shares: % Value 2018-2022

% retail value rsp excl sales tax

Company 2018 2019 2020 2021 2022

SM Retail Inc 24.0 24.5 24.9 25.1 24.3

Robinsons Retail Holdings 15.4 15.7 14.4 14.9 14.4
Inc
Puregold Price Club Inc 3.6 3.6 3.6 3.4 3.0
Metro Retail Stores Group 2.7 3.0 2.9 2.9 2.6
Gaisano Grand Group of Cos 2.1 2.1 2.1 1.9 2.1
New City Commercial Corp 1.7 1.9 1.8 1.6 1.4
Gaisano Capital Group 1.2 1.2 1.1 1.3 1.2
MerryMart Consumer Corp - 0.5 0.6 0.7 0.7
Prince Warehouse Club Inc 0.8 0.8 0.8 0.7 0.7
MBV Group of Cos 0.6 0.6 0.7 0.7 0.6
Liberty Commerical Center 0.5 0.5 0.5 0.5 0.5
Inc
Landmark Corp, The 0.4 0.5 0.5 0.5 0.5
Ultra Mega Wholesale & 0.4 0.4 0.5 0.5 0.5

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Retail Mart
DSG Sons Group Inc 0.4 0.4 0.4 0.4 0.4
Unitop General 0.2 0.2 0.2 0.2 0.2
Merchandise Inc
Gaisano Northern Mindanao 0.2 0.2 0.2 0.2 0.2
(Unipace Corp)
City Supermarket Inc 0.2 0.2 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 0.0
Others 45.3 43.3 44.3 43.9 46.3
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 2019-2022

% retail value rsp excl sales tax

Brand Company (GBO) 2019 2020 2021 2022

Robinsons Robinsons Retail Holdings 12.2 11.8 12.2 11.8

Inc
SM Supermarket SM Retail Inc 11.2 11.4 11.3 10.6
Save More Supermarket SM Retail Inc 10.1 10.4 10.5 10.3
Waltermart Supermarket SM Retail Inc 3.2 3.2 3.3 3.4
Puregold Puregold Price Club Inc 3.6 3.6 3.4 3.0
Metro Supermarket Metro Retail Stores Group 3.0 2.9 2.9 2.6
Marketplace Robinsons Retail Holdings 2.7 2.6 2.6 2.5
Inc
Gaisano Grand Mall Gaisano Grand Group of Cos 2.1 2.1 1.9 2.1
NCCC New City Commercial Corp 1.9 1.8 1.6 1.4
Gaisano Capital Gaisano Capital Group 1.2 1.1 1.3 1.2
MerryMart MerryMart Consumer Corp 0.5 0.6 0.7 0.7
Prince Town Prince Warehouse Club Inc 0.8 0.8 0.7 0.7
AllDay Supermarket MBV Group of Cos 0.6 0.7 0.7 0.6
LCC Liberty Commerical Center 0.5 0.5 0.5 0.5
Inc
Landmark Landmark Corp, The 0.5 0.5 0.5 0.5
Ultra Mega Supermarket Ultra Mega Wholesale & 0.4 0.5 0.5 0.5
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 Mindanao 0.2 0.2 0.2 0.2
(Unipace Corp)
City Supermarket City Supermarket Inc 0.2 0.2 0.2 0.2
Shopwise Express/ Robinsons Retail Holdings 0.8 - - -
Wellcome Inc
Others 43.6 44.6 44.2 46.5
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 2019-2022

sites/outlets

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Brand (GBO) Company (NBO) 2019 2020 2021 2022

Save More Supermarket SM Retail Inc 201 209 214 222

Robinsons Supermarket Robinsons Retail Holdings 140 143 145 145
Inc
MerryMart MerryMart Consumer Corp 3 25 68 105
Puregold Puregold Price Club Inc 103 100 100 99
Robinsons Easymart Robinsons Retail Holdings 66 70 80 90
Inc
Waltermart Waltermart Supermarket Inc 60 71 73 78
Supermarket (SM
Retail Inc)
SM Supermarket SM Retail Inc 58 52 61 63
Gaisano Capital Gaisano Capital Group 47 47 47 41
Supermarket
LCC Supermarket Liberty Commerical Center 35 38 38 40
Inc
Gaisano Grand Mall Gaisano Grand Group of Cos 39 39 39 39
Supermarket
Ultra Mega Supermarket Ultra Mega Wholesale & 26 32 33 37
Retail Mart
Marketplace Robinsons Retail Holdings 34 35 34 35
Inc
AllDay Supermarket All Value Holdings Corp 22 25 32 35
(MBV Group of Cos)
Metro Supermarket Metro Retail Stores Group 30 31 35 31
Unitop Supermarket Unitop General 29 30 30 30
Merchandise Inc
LCC Expressmart Liberty Commerical Center 25 25 25 26
Inc
NCCC Choice Mart New City Commercial Corp 25 24 24 24
Magic Supermarket Magic Group of Cos 20 23 23 22
NCCC Supermarket New City Commercial Corp 22 21 21 21
City Supermarket City Supermarket Inc 16 18 19 19
Shopwise Express/ Robinsons Retail Holdings 36 - - -
Wellcome Inc
Others Others 1,109 1,168 1,194 1,230
Total Total 2,146 2,226 2,335 2,432
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 6 Supermarkets Forecasts: Value Sales, Outlets and Selling Space 2022-2027

2022 2023 2024 2025 2026 2027

Value sales PHP million 595,840.0 632,742.9 667,367.7 699,968.3 730,795.4 758,973.6
Outlets 2,432.0 2,552.0 2,665.0 2,773.0 2,875.0 2,971.0
Selling Space '000 sq m 4,002.3 4,244.6 4,478.2 4,702.3 4,916.3 5,139.9
Source: Euromonitor International from trade associations, trade press, company research, trade interviews,
trade sources
Note: Forecast value data in constant terms.

Table 7 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: % Growth
2022-2027

% growth
2022/23 2022-27 CAGR 2022/27 Total

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Value sales PHP million 6.2 5.0 27.4

Outlets 4.9 4.1 22.2
Selling Space '000 sq m 6.1 5.1 28.4
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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