05_Preread_StoreStrategy

Specific market insights: the Philippines

Key competitive pressure

Potential response strategy

E-commerce Expansion and Digital Disruption

Keep adopting omnichannel model, integrating online and offline experiences

Advancements in technology are raising consumer expectations for personalized and seamless shopping experiences

Shopee and Lazada dominate the online retail space, offering aggressive promotions and a wide product range

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Retail E-Commerce 35.6% 2019-24 CAGR

Retail offline 3.0% 2019-24 CAGR

CR2 = 34.2%

Price Sensitivity and Discount Retailing

Promotions and loyalty programs to attract and retain customers

Filipino consumers are highly price-sensitive; Discount stores are thriving

► Hard Discount Store chains like Dali Everyday Grocery have

expanded rapidly, operating over 630 stores in the Philippines by 2024, targeting price-sensitive consumers with low-cost offerings

► The rise of discount retailers poses challenges to traditional sari-sari stores and supermarket chains

Opened first store in Feb 2020 Currently operating 630+ stores

Operational Challenges and Supply Chain Disruptions

Adopting advanced digital supply chain operations

Operational Challenges and Supply Chain Disruptions

Geographic complexity and fragmented logistics, complicates logistics operations

High Logistics Costs and Operational Inefficiencies

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Source: broker reports, public articles, public news, Euromonitor

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