AMID the price increases of rice and oil, Cebuano retailers still have good prospects for the rest of the year.
“Sales records are (still) being hit this year, especially for luxury items,” Jonathan Aldeguer, president of the Philippine Retailer’s Association-Cebu chapter, said.
But Aldeguer admits that he is “pretty worried” about the present situation since the price hikes can immediately be felt by the consumers.
With the continued increase in oil prices and the problems with the country’s rice supply, Aldeguer said that price adjustment on the part of the retail industry is “to be expected.”
Aldeguer, however, attributes the industry’s positive outlook from the Cebuanos’ increased purchasing power.
He also said that instead of more stores closing, many stores in Cebu are being set up despite the difficult times. “Cebu has been very resilient,” he said, adding that there is “something in Cebu” that allows the province to see through the hard times.
He added that, at present, more Filipinos abroad are also looking into coming back to the Philippines and this will add to the spending rate of the country.
Competitive
Department of Trade and Industry 7 Director Asteria Caberte also said that Cebu’s competitive retail industry has allowed the province to have a low inflation rate compared to other provinces in the Visayas. She said that Cebu’s inflation rate is at 9.9 percent.
Chester Lim, vice president of Cebu Belmont Inc., said the construction industry was also affected by the crisis as evidenced by some construction projects experiencing delays.
Basic construction supplies, said Lim, already cost 60 percent higher.
Market demand has also contributed to this increase, Lim added. (DME)
