Competition, enough supplies to keep prices down during ‘ber’ months
Filipino consumers need not worry about the costs of goods surging during the “ber” months, as ample stocks and growing competition among retailers are tempering prices.
“There will be no more price increases,” Philippine Amalgamated Supermarkets Association president Steven Cua said on Tuesday at the sidelines of the Anvil Business Summit.
Cua told reporters that the prices of all sardine brands, for instance, have dropped by P1.
He explained that supermarkets have stopped raising retail prices because of the entry of new players, resulting in a lower market share.
According to him, supermarkets used to bulk up their inventories because grocery stores in the provinces had limited supplies.
“Now, they [supermarkets outside the metro] have spread, [they have] mushroomed. There’s no need to [stock up],” Cua said. “We also compete with bus stations, which buy large cans of biscuits and sell them there.”
While most Filipinos still head for their provinces to commemorate “Undas”—the Filipino term for All Saints’ Day and All Souls’ Day—“they no longer shop for it anymore,” he added.
At the same time, Cua said demand for grocery items slowed down during the May midterm elections. While prices were generally stable in the first six months, some grocery items became cheaper during election season, while nonessential items became more expensive, he added.
Consumers, however, did not feel the price adjustments since they had plenty of options to choose from in supermarkets and even hard-discount stores (those offering products at cheaper prices).
Cua said competition in the supermarket industry is projected to be “very tight” not only because of the expansion of hard-discount chains but also regular grocery stores opening more branches.
