SUPERMARKETS IN THE

PHILIPPINES
Euromonitor International
January 2019
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Smaller Grocery Formats Address Changing Shopping Behaviour .......................................... 1
Online Grocery Retailing Starting To Take Off ......................................................................... 1
Supermarkets Set To Continue To Slowly Expand Their Footprint But Will Be at Risk Due To
Inflation ..................................................................................................................................... 2
Competitive Landscape ................................................................................................................ 2
Sm Retail Set To Launch Its Own Online Store Using A Click-and-collect Model .................... 2
Allday Supermarket Offers Something New ............................................................................. 2
Dairy Farm International Merges With Robinsons Retail and Robinsons Takes Over Rustan’s
Supercenters ............................................................................................................................ 3
Channel Data ............................................................................................................................... 3
Table 1 Supermarkets: Value Sales, Outlets and Selling Space 2013-2018 ............. 3
Table 2 Supermarkets: Value Sales, Outlets and Selling Space: % Growth
2013-2018 .................................................................................................... 3
Table 3 Supermarkets GBO Company Shares: % Value 2014-2018 ........................ 3
Table 4 Supermarkets GBN Brand Shares: % Value 2015-2018 .............................. 4
Table 5 Supermarkets LBN Brand Shares: Outlets 2015-2018 ................................. 4
Table 6 Supermarkets LBN Brand Shares: Selling Space 2015-2018 ...................... 5
Table 7 Supermarkets Forecasts: Value Sales, Outlets and Selling Space
2018-2023 .................................................................................................... 6
Table 8 Supermarkets Forecasts: Value Sales, Outlets and Selling Space: %
Growth 2018-2023 ....................................................................................... 6

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SUPERMARKETS IN THE
PHILIPPINES
HEADLINES
 In 2018 supermarkets records current value growth of 6% to reach sales of PHP507.5 billion
 Online grocery retailing is starting to take off
 SM Retail remains the leading player but is facing increasing competition from other operators
 Over the forecast period supermarkets is expected to post a current value CAGR of 8% (5%
at constant 2018 prices) to reach sales of PHP745.1 billion in 2023

PROSPECTS

Smaller Grocery Formats Address Changing Shopping Behaviour

Grocery retailers in 2018 continued to improve their smaller formats so as to keep up with
changing consumer behaviour, with many Filipinos now preferring to shop in smaller outlets,
albeit more frequently. Aside from the aggressive expansion of their convenience store banners,
multi-format retailers are also focusing on their supermarkets. Robinsons Retail Holdings, owner
of the hypermarket chain Shopwise, shifted its focus to the Shopwise Express format, which has
already doubled its footprint a year after being launched. SM Retail’s Save More is also growing
faster than its standard supermarket format. Growth is partly being driven by Save More’s
partnership with DoubleDragon, a mall developer with a primary focus on emerging urban
centres in the provinces. Robinsons also continued to support its minimart format, Robinsons
Easymart, which was created to serve densely populated residential areas across Luzon and
Metro Manila. LCC Supermarket, a leading player in the Bicol region, also opened more LCC
Expressmart outlets, with this being a smaller supermarket format.

Online Grocery Retailing Starting To Take Off

In 2017, grocery retailers tested consumers’ response to internet retailing by partnering
established e-commerce platforms. In 2018, the popularity of online grocery retailing grew so
rapidly that not only grocery retailers started to launch their own e-commerce sites but third
party marketplaces such as Lazada and Shopee also introduced a dedicated platform for online
grocery sales. Waltermart Supermarket was one of the first to introduce its own online ordering
and delivery service. In August 2018, Waltermart also launched its own mobile app, called
Walter Mart Grocery Delivery, to make shopping even more convenient. NCCC Supermarket, a
leading retailer in the Mindanao region, is also set to launch an online delivery service in
partnership with Small Basket Co. This shows that the trend is not exclusive to Metro Manila
and other key cities but is also gaining ground in the provinces. honestbee also started
delivering food and groceries in Cebu at the start of 2018, having recognised that consumer
adoption has been more rapid in Cebu City than in Metro Manila. honestbee also continues to
deliver for Robinsons Supermarket, with this partnership growing as more of Robinsons’
supermarkets offered online sales in 2018. In 2017, 17 Robinsons Supermarkets were served
by honestbee, with this number expected to rise to 50 by the end of 2018. Ultramega is another
supermarket chain which delivers through honestbee.
The announcement from both Lazada and Shopee that they will strengthen their platforms to
include online grocery will help improve awareness and eventually the adoption of online

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grocery retailing in the Philippines. An efficient service, speedy delivery and wide assortment of
products will be crucial to the growth of online grocery retailing over the coming years.

Supermarkets Set To Continue To Slowly Expand Their Footprint But

Will Be at Risk Due To Inflation
Supermarket operators will continue to expand the footprint of their chains. Supermarkets are
also some of the major anchors of shopping malls, which will help support growth of the
channel. Ayala Malls has partnered Puregold to launch a new supermarket brand called
Merkado, which will eventually be an anchor store in Ayala’s malls. This is the first venture for
Puregold in mall-based supermarkets as its most of its existing stores are stand-alone outlets.
However, like other grocery retailers, the sales of supermarkets are also likely to be impacted by
inflation, which will dampen consumer spending. At the end of 2018, Puregold had already
identified inflation as a risk to its business.

COMPETITIVE LANDSCAPE

Sm Retail Set To Launch Its Own Online Store Using A Click-and-collect

Model
Being part of the largest conglomerate in the Philippines which is also a mall developer, SM
Retail is focusing on the click-and-collect model to encourage customers to still visit malls and
grocery outlets. SM Retail’s online shopping platform is part of SM Prime Holding’s bigger
project, which is expected to make SM more competitive with other e-commerce sites. The click-
and-collect model leans towards the fusion of online and physical stores, which is also in line
with retailers’ direction towards omnichannel retailing. Customers can order items online and
then pick them up in-store. However, as SM is testing this service, it is currently only selling non-
perishable grocery items through a limited number of SM Market outlets. SM will continue to
review the business model to address the needs of consumers in the future, for example by
offering home delivery. SM’s presence in internet retailing poses a threat to other players
because of its established name in the retail industry. Some consumers will remain sceptical
about the security of ordering grocery items online but SM can easily address such concerns as
it is a trusted name. SM’s expansive network of stores and warehouses can also be easily used
for distribution. However, it will not be easy for the operator to dethrone Lazada, and now
Shopee, in the e-commerce industry as these two players already have the system and tools in
place to run an online platform.

Allday Supermarket Offers Something New

Under its AllDay Supermarket chain, the local retail operator All Value Holdings is slowly
opening new outlets across the country, attracting shoppers with its unique design, which is
pleasing on the eye and can help make grocery shopping a more enjoyable experience. Aside
from aesthetics, AllDay Supermarket has other unique offerings such as its “Paluto Section”,
which is already a common feature in the foodservice industry and local seafood markets, but
not retail stores. Paluto means buying fresh ingredients in the store and having them cooked
immediately by in-house chefs. This service is especially appealing to large families and parents
with a lack of time. In addition, AllDay outlets also serve Merienda (afternoon snacks), which is
something new for supermarkets. These kinds of additional services should help AllDay
Supermarket to attract more customers, especially those looking for new and unique
experiences.

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Dairy Farm International Merges With Robinsons Retail and Robinsons

Takes Over Rustan’s Supercenters
Robinsons Retail’s portfolio is set to expand following a deal with Dairy Farm International,
which has a 100% stake in Rustan’s Supercenter in the Philippines. Robinsons operates more
than 160 supermarkets across the country and will gain a further 75 once it completes its
acquisition of Rustan’s Supercenters. Rustan’s Supercenter operates supermarkets under
different brands and a hypermarket under the Shopwise brand. This deal is also likely to
strengthen Dairy Farm’s presence in the Philippines as the retailer sees the country’s grocery
retailing channel as ripe for investment. Robinsons Retail, on the other hand, agreed to the
partnership so as to have the potential to become the leading food retailer in the country.

CHANNEL DATA
Table 1 Supermarkets: Value Sales, Outlets and Selling Space 2013-2018

2013 2014 2015 2016 2017 2018

Value sales PHP bn 355.9 391.4 421.5 454.4 478.2 507.5

Outlets '000 1.5 1.7 1.8 1.8 1.9 2.0
Selling Space mn sq m 2.2 2.4 2.7 2.9 3.1 3.4
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 2013-2018

% growth
2017/18 2013-18 CAGR 2013/18 Total

Value sales PHP million 6.1 7.4 42.6

Outlets 5.8 5.9 33.1
Selling Space '000 sq m 9.8 9.2 55.3
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 3 Supermarkets GBO Company Shares: % Value 2014-2018

% retail value rsp excl sales tax

Company 2014 2015 2016 2017 2018

SM Retail Inc 19.7 22.4 22.8 23.2 23.4

JG Summit Holdings Inc 10.0 10.3 10.7 10.9 11.6
Puregold Price Club Inc 3.0 3.1 3.5 3.6 3.7
Metro Retail Stores Group 3.4 3.4 3.3 3.2 2.9
Gaisano Grand Group of 1.9 1.9 1.9 2.0 2.0
Cos
Rustan Group of Cos 2.5 2.7 2.5 2.5 1.9
New City Commercial Corp 1.4 1.7 1.6 1.6 1.6
Dairy Farm 0.9 0.9 1.0 1.0 1.2
International Holdings
Ltd
Gaisano Capital Group 1.3 1.3 1.2 1.1 1.1
MBV Group of Cos - - 0.4 0.6 1.1

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Liberty Commerical 0.5 0.5 0.5 0.5 0.5

Center Inc
Prince Warehouse Club Inc 0.3 0.3 0.7 0.7 0.5
Ultra Mega Wholesale & 0.4 0.5 0.4 0.4 0.4
Retail Mart
Landmark Corp, The 0.4 0.4 0.4 0.4 0.4
DSG Sons Group Inc 0.3 0.3 0.4 0.4 0.4
Mulgrave Corp BV - - - - 0.3
Unitop General 0.2 0.2 0.2 0.2 0.2
Merchandise Inc
Gaisano Northern 0.4 0.3 0.3 0.2 0.2
Mindanao (Unipace Corp)
City Supermarket Inc 0.1 0.1 0.1 0.2 0.2
CVC Supermart Inc 0.1 0.1 0.1 0.1 0.1
Others 53.0 49.5 47.8 47.0 46.0
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 2015-2018

% retail value rsp excl sales tax

Brand Company (GBO) 2015 2016 2017 2018

Robinsons JG Summit Holdings Inc 10.3 10.7 10.9 11.6

SM Supermarket SM Retail Inc 10.7 10.7 10.8 10.7
Save More Supermarket SM Retail Inc 8.6 9.0 9.4 9.7
Puregold Puregold Price Club Inc 3.1 3.5 3.6 3.7
Waltermart SM Retail Inc 3.1 3.1 3.0 3.0
Supermarket
Metro Supermarket Metro Retail Stores Group 3.4 3.3 3.2 2.9
Gaisano Grand Mall Gaisano Grand Group of Cos 1.9 1.9 2.0 2.0
Rustan Rustan Group of Cos 2.7 2.5 2.4 1.9
NCCC New City Commercial Corp 1.7 1.6 1.6 1.6
Gaisano Capital Gaisano Capital Group 1.3 1.2 1.1 1.1
AllDay Supermarket MBV Group of Cos - 0.4 0.6 1.1
Marketplace Dairy Farm 0.4 0.5 0.5 0.7
International Holdings Ltd
LCC Liberty Commerical 0.5 0.5 0.5 0.5
Center Inc
Prince Town Prince Warehouse Club Inc 0.3 0.7 0.7 0.5
Wellcome Dairy Farm 0.5 0.5 0.5 0.5
International Holdings Ltd
Ultra Mega Ultra Mega Wholesale & 0.5 0.4 0.4 0.4
Supermarket Retail Mart
Landmark Landmark Corp, The 0.4 0.4 0.4 0.4
GMarket DSG Sons Group Inc 0.3 0.4 0.4 0.4
Shopwise Express Mulgrave Corp BV - - - 0.3
Unitop Unitop General 0.2 0.2 0.2 0.2
Merchandise Inc
Others 50.1 48.4 47.6 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 2015-2018

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sites/outlets
Brand (GBO) Company (NBO) 2015 2016 2017 2018

Save More Supermarket SM Retail Inc 136 156 181 203

Robinsons Robinsons Retail 124 140 154 167
Supermarket (JG Holdings Inc
Summit Holdings Inc)
Puregold Puregold Price Club Inc 93 100 103 105
SM Supermarket SM Retail Inc 45 48 52 56
Waltermart Waltermart Supermarket 32 39 46 51
Supermarket (SM Inc
Retail Inc)
Gaisano Grand Mall Gaisano Grand Group of 30 32 34 37
Supermarket Cos
LCC Supermarket Liberty Commerical 22 25 29 30
Center Inc
Unitop Supermarket Unitop General 23 27 28 29
Merchandise Inc
Metro Supermarket Metro Retail Stores Group 24 25 26 29
AllDay Supermarket All Value Holdings Corp - 5 13 26
(MBV Group of Cos)
Gaisano Capital Gaisano Capital Group 28 25 25 25
Supermarket
LCC Expressmart Liberty Commerical 18 18 19 21
Center Inc
Magic Supermarket Magic Group of Cos 19 19 19 19
Ultra Mega Ultra Mega Wholesale & 18 18 19 19
Supermarket Retail Mart
Rustan's Supermarket Rustan Group of Cos 22 24 22 18
Wellcome (Dairy Rustan Group of Cos 17 17 17 17
Farm International
Holdings Ltd)
City Supermarket City Supermarket Inc 17 12 14 15
NCCC Supermarket New City Commercial Corp 13 12 13 15
Marketplace (Dairy Rustan Group of Cos 2 4 8 14
Farm International
Holdings Ltd)
Shopwise Express Rustan Group of Cos - - - 14
(Mulgrave Corp BV)
Others Others 1,074 1,086 1,111 1,135
Total Total 1,757 1,832 1,933 2,045
Source: Euromonitor International from official statistics, trade associations, trade press, company research,
trade interviews, trade sources

Table 6 Supermarkets LBN Brand Shares: Selling Space 2015-2018

selling space '000 sq m

Brand (GBO) Company (NBO) 2015 2016 2017 2018

Save More Supermarket SM Retail Inc 404.3 463.7 506.8 582.9

SM Supermarket SM Retail Inc 310.6 331.3 345.6 362.9
Robinsons Robinsons Retail 349.1 263.2 289.5 314.0
Supermarket (JG Holdings Inc
Summit Holdings Inc)
Waltermart Waltermart Supermarket 74.0 112.0 125.5 133.7
Supermarket (SM Inc
Retail Inc)
Puregold Puregold Price Club Inc 74.4 77.6 77.5 79.5
Gaisano Grand Mall Gaisano Grand Group of 60.0 64.0 69.1 76.0

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Supermarket Cos
Rustan's Supermarket Rustan Group of Cos 62.5 68.2 62.5 50.2
Gaisano Capital Gaisano Capital Group 56.0 50.0 50.0 50.0
Supermarket
Metro Supermarket Metro Retail Stores Group 53.0 43.4 44.5 48.6
Ultra Mega Ultra Mega Wholesale & 45.0 45.0 47.5 47.5
Supermarket Retail Mart
LCC Supermarket Liberty Commerical 33.0 37.5 41.3 43.3
Center Inc
Magic Supermarket Magic Group of Cos 34.2 34.2 34.2 35.9
AllDay Supermarket All Value Holdings Corp - 16.0 17.6 35.9
(MBV Group of Cos)
Marketplace (Dairy Rustan Group of Cos 5.0 10.0 19.0 34.2
Farm International
Holdings Ltd)
Unitop Supermarket Unitop General 18.4 21.6 22.4 23.1
Merchandise Inc
City Supermarket City Supermarket Inc 25.5 18.0 19.8 22.2
NCCC Supermarket New City Commercial Corp 19.7 18.2 19.7 21.6
LCC Expressmart Liberty Commerical 18.0 18.0 19.0 20.9
Center Inc
Wellcome (Dairy Rustan Group of Cos 19.3 19.3 19.3 19.3
Farm International
Holdings Ltd)
Landmark Supermart Landmark Corp, The 15.0 15.0 18.2 18.2
Others Others 981.2 1,131.4 1,225.7 1,357.1
Total Total 2,658.3 2,857.7 3,074.9 3,377.0
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 2018-2023

2018 2019 2020 2021 2022 2023

Value sales PHP bn 507.5 533.5 558.3 584.1 611.2 640.0

Outlets '000 2.0 2.1 2.2 2.3 2.4 2.5
Selling Space mn sq m 3.4 3.7 3.9 4.2 4.5 4.9
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
2018-2023

% growth
2018/19 2018-23 CAGR 2018/23 Total

Value sales PHP million 5.1 4.7 26.1

Outlets 4.8 4.5 24.4
Selling Space '000 sq m 8.2 7.6 44.2
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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