Christmas sales up from last year, grocers say

Business World

But same-store sales likely dropped

CONSUMERS bought more Christmas groceries this year but individual stores are unlikely to have recorded sales growth as more shops competed for patronage, industry groups said late on Tuesday.

"Christmas sales on an industry aggregate level are better than last year," Philippine Association of Supermarkets, Inc. President Carlos V. Cabochan said in a text message.

Smaller community grocers likewise saw sales increasing "by approximately 5-7% this year over 2009", Philippine Amalgamated Supermarkets Association, Inc. (PAGASA) President Steven T. Cua said in a separate text message.

The improvement comes alongside an earlier central bank report that consumer sentiment was at a four-year high for the last three months of 2010.

The October-December quarterly confidence index stood at -8.5%, which while in the pessimistic category was an improvement from the third quarter’s -14%.

"With more stores this year, however, sales increased or decreased based on location. There are areas where store concentration increased and sales of stores in those areas declined due to the number of stores in the area..." Mr. Cabochan said.

Mr. Cua similarly said: "Same-store sales may have dropped from last year in view of the many stores added to the market this year."

"This is especially true in Metro Manila where Pure Gold, Save More, Robinsons, Mercury chains expanded," he added.

This will be the case again as consumers troop to the stores this week to prepare for New Year’s celebrations.

"The same should hold for New Year sales," Mr. Cabochan said. -- Jessica Anne D. Hermosa