Supermarkets say midterm poll boost muted as competition with discounters intensifies

SUPERMARKETS said the midterm elections failed to deliver the expected boost in spending due to intensifying competition in the industry, particularly from discounters.

Speaking on the sidelines of the Anvil Business Summit 2025 on Monday, Steven T. Cua, Executive Director of the Philippine Amalgamated Supermarket Association, Inc., said competitors have so saturated the market that “even the midterm elections did not make a dent.”

“There are a lot of new stores that opened, not just the hard discount stores, but even regular stores,” he said.

Mr. Cua added that the gambling craze is beginning to be reflected in their sales.

“Money is being channeled everywhere… Some consumers put their money in online gambling, because they would rather get rich right away than buy groceries.”

He said prices have been fairly stable in the first six months.

“Prices have been flat. In fact, some prices even went down. There were price increases, but for non-essential items,” he said.

“The price increases were not felt so much because there is now more choice, and there are more imported items, especially from the hard discount stores, which have been developing house brands,” he added.

Hard discounters offer no-frills shopping and minimal marketing, focusing on everyday essentials. In the Philippines the segment includes DALI Everyday Grocery and O! Save.

Asked how the supermarkets are preparing for the holidays, he said inventory levels are currently high.

“There are lots of stocks right now. Because there’s not so much demand. And, during the last election, grocery items weren’t moving,” he said. — Justine Irish D. Tabile