inflation bites filipinos
|

As inflation bites, Filipinos have become ‘intentional’ shoppers

MANILA, Philippines – Filipinos have not stopped shopping despite the creeping specter of inflation, though the country’s biggest retailer is seeing a consumer who’s increasingly deliberate about where each peso goes.

SM Investments Corporation (SMIC) said consumer spending across its stores and malls remained resilient in the first half of 2026, helping lift consolidated revenues by 6% to P339.2 billion and net income by 8% to P45.9 billion. SM Retail in particular had a net income of P8.9 billion, up 5%.

In this sense, SM is well-situated to be resilient in a Philippine economy largely powered by consumers. Household spending usually accounts for more than 70% of the economy. But even as GDP growth grew at an incredibly weak 2.3% in Q2 2026, household consumption still expanded 2.8%, while investments shrank by 9.2%.

“We continue to see stable and healthy consumer spending across our retail and also our malls, despite the fact that fuel prices took a big jump in Q2,” SMIC executive vice president for finance Franklin Gomez said during the conglemerates H1 briefing.

But underneath that resilience, SM’s own checkout data suggest consumers are shopping differently depending on what they are buying.

For food retail, the number of transactions is increasing, but the average amount spent each time has remained flat.

“People have to shop, people have to eat,” SM Retail president Jonathan Ng said. “We do see that the transaction count has been increasing. Basket size remains flat.”

In other words, supermarkets and other food formats are ringing up more purchases, but shoppers are not significantly expanding how much they spend on each transaction.

Non-food tells the opposite story. Transaction counts are flat, meaning SM is not necessarily seeing more purchases, but basket sizes are bigger. Ng said this suggests shoppers are becoming more “intentional” when they visit malls and stores.

“People have become more discerning, more intentional when they go visit the mall and shop inside our stores.”

Must Read

SM Prime to bring premier mall experience to Nuvali by October 2026


SM Prime to bring premier mall experience to Nuvali by October 2026

‘Good, better, best’ strategy

A bigger peso basket also doesn’t necessarily mean consumers are buying substantially more goods either. SMIC president and CEO Frederic DyBuncio said the retailer has raised prices broadly in line with inflation, while Ng said higher fuel costs are pushing up logistics expenses and suppliers have begun increasing prices. 

Inflation stood at 6.2% in July, bringing the seven-month average to 5%, with food, housing, and transport accounting for most of the increase.

To keep customers shopping despite the pressure on their wallets, SM is relying on what it called its “good, better, best” assortment, letting them pick cheaper alternatives if one option goes over budget.

“We always prepare ourselves in terms of assortment, so even if there’s an impact on the disposable income of our shoppers, we continue to offer them a portfolio – if you can’t afford this, then we have this,” Ng told reporters on Wednesday, August 12. “Always a good, better, best assortment of items that we have inside our stores.”

That said, Filipinos haven’t abandoned wants altogether. SMIC reported higher specialty retail sales in home, fashion and kids, while SM Prime said mall revenues climbed 8% to P41.8 billion on stronger tenant sales and higher occupancy.

SM Prime is also seeing consumers redirect leisure spending closer to home. Management said volatile fuel prices and a weaker peso discouraged some overseas travel, leading families toward domestic staycations, while air-conditioned malls and their dining and entertainment offerings encouraged customers to stay longer and spend. 

SM Supermalls president Steven Tan said casual dining continues to post “very high double-digit” growth, with health and wellness another growing category. – Rappler.com

Similar Posts

  • |

    Pakistan, Malaysia agree to strengthen counter-terrorism and security cooperation

    ISLAMABAD: Pakistan and Malaysia have agreed to deepen cooperation in security and law enforcement, with particular emphasis on intelligence sharing, counter-terrorism, drug trafficking, human smuggling and other transnational crimes. The understanding was reached during a meeting between Federal Interior Minister Mohsin Naqvi and Malaysian Minister of Home Affairs Saifuddin Nasution Ismail in Islamabad on Saturday. The two sides reviewed a range of issues related to bilateral security cooperation and agreed to strengthen institutional coordination between the relevant agencies of both countries. During the meeting, the ministers discussed ways to develop more effective mechanisms for exchanging intelligence and coordinating efforts against terrorist networks, narcotics trafficking and human trafficking. They also agreed to enhance cooperation aimed at preventing illegal immigration and tackling cybercrime, which has emerged as a growing challenge for law enforcement agencies worldwide. The two countries also discussed expanding collaboration in the fields of coast guard operations and professional training. Pakistan expressed interest in learning from Malaysia’s experience in strengthening maritime security and developing the capabilities of its coast guard institutions. A key outcome of the meeting was an agreement to improve cooperation between Pakistan’s National Police Academy and the Royal Malaysia Police College. The initiative is expected to facilitate the exchange of expertise, training programmes and professional experiences between law enforcement personnel from the two countries. The ministers also agreed that a high-level Pakistani delegation would visit Malaysia in the near future. The proposed visit is expected to provide an opportunity to advance discussions on bilateral security cooperation and explore new areas of collaboration between the two countries. Naqvi said Pakistan attached great importance to its relations with Malaysia and was keen to further expand cooperation in areas of mutual interest. He said Malaysia’s experience in the Coast Guard sector could provide valuable lessons for Pakistan and expressed confidence that the Malaysian minister’s visit would help take bilateral relations to a new level. The interior minister also highlighted the potential for increasing people-to-people contacts between Pakistan and Malaysia. He described Malaysia as one of the rapidly developing Muslim-majority countries and an attractive destination for Pakistani tourists. Naqvi stressed the importance of facilitating legitimate travel between the two countries, saying that an increase in employment opportunities and work quotas for Pakistanis in Malaysia could encourage more people to use legal channels for travelling and working abroad. Tourism promotion and the facilitation of visa procedures also formed part of the discussions. Both sides emphasized the need to make travel easier while ensuring that immigration systems remain secure and effective. The meeting comes as Pakistan and Malaysia seek to broaden cooperation beyond traditional diplomatic and economic ties, particularly in dealing with security challenges that increasingly cross national borders. Officials from Pakistan’s Interior Ministry and law enforcement institutions also attended the meeting. Participants included State Minister for Interior Talal Chaudhry, the Interior Secretary, Director General of the Federal Investigation Agency (FIA), Inspector General of the Federal Constabulary (FC), the National Coordinator of the National Counter Terrorism Authority (NACTA), and other senior officials. The two countries are expected to continue consultations through their respective institutions, with the planned Pakistani delegation’s visit to Malaysia likely to provide further momentum to cooperation in counter-terrorism, law enforcement, immigration and maritime security.

  • | | |

    Dar targets $20bn Pakistan-US trade

    Deputy Prime Minister and Foreign Minister Ishaq Dar has expressed confidence that Pakistan and the United States can increase bilateral trade in goods to $20 billion within the next five years. Dar said Pakistan’s trade in goods with the US stood at $9.4 billion during the last fiscal year. He described the US as Pakistan’s largest single-country export market. Addressing a US Congressional Delegation and American business representatives, Dar said stronger trade and investment ties could create new opportunities for companies in both countries. He said closer economic cooperation could also generate employment, encourage innovation and support long-term economic growth. Dar highlighted several areas where Pakistan and the US could expand commercial cooperation. These include information technology, artificial intelligence, energy, manufacturing, agriculture and critical minerals. He said Pakistan is already an important buyer of American cotton and soybeans. The country is also becoming a growing market for US hydrocarbons. At the same time, Pakistan’s increasing demand for advanced machinery, technology and capital goods could create opportunities for American manufacturers, he added. Dar said the presence of more than 80 US companies in Pakistan demonstrated growing confidence in the country’s market and economic potential. He welcomed the interest shown by American companies in Pakistan’s technology, energy, critical minerals and defence sectors. The foreign minister also pointed to the US Exim Bank’s $1.25 billion financing for the Reko Diq project as an indication of increasing US confidence in Pakistan’s investment prospects. Dar encouraged American businesses to establish partnerships with Pakistani companies and explore long-term investment opportunities. He said Pakistan had improved its infrastructure over the past decade through modern highways, ports and logistics networks. These developments, he added, had strengthened the country’s position as a potential trade and investment gateway. The government is also working to make the business environment more investor-friendly. Dar said regulatory procedures had been simplified to reduce bureaucratic delays and make licensing and approvals easier. He said Pakistan wanted to deepen cooperation with the US across both goods and services. Technology, AI, energy, manufacturing, critical minerals and agriculture were among the sectors identified for greater collaboration. Dar also highlighted the broader improvement in Pakistan-US relations. He said frequent high-level contacts under Prime Minister Shehbaz Sharif and US President Donald Trump had helped strengthen bilateral engagement. He said his meetings with US Secretary of State Marco Rubio had also focused on strengthening relations and discussing regional developments. The foreign minister stressed that parliamentary engagement was equally important. He said regular interaction between lawmakers could improve mutual understanding and strengthen institutional ties. Dar said Pakistan’s engagement with the US Congress had increased significantly over the past year. The interaction has included lawmakers from both political parties and key congressional committees. The two countries also discussed regional security and stability. Dar said stronger Pakistan-US relations could contribute to peace and stability in the wider region. He also recalled Pakistan’s role in facilitating dialogue between the US and Iran. Dar said Islamabad remained committed to dialogue, diplomacy and peaceful solutions to regional disputes. The foreign minister separately received a US congressional delegation comprising Representatives Ryan Zinke and Michael James Baumgartner. During the meeting, both sides discussed ways to expand cooperation in trade, investment, IT, energy and other areas. The US lawmakers acknowledged the contribution of the Pakistani community to American society and economy. They described the diaspora as an important link between the two countries.

  • |

    Senate pushes Rs617m gas project for 42 Ghotki villages

    Islamabad: After years of waiting, 42 villages located near the Badar Gas Field in District Ghotki are finally moving towards receiving natural gas as the Senate Petroleum Sub Committee pushed authorities to act on a long delayed promise linked to the Prime Minister’s Directive of 15 September 2003 and Supreme Court directions. The Sub Committee, convened by Senator Jam Saifullah Khan, expressed concern over the continued delay in providing gas facilities to villages located within five kilometres of gas producing fields. The Committee directed relevant departments and companies to ensure that previous commitments are converted into practical work without further delay. The meeting was attended by Senators Manzoor Ahmed Kakar and Haji Hidayatullah Khan along with senior officials from the Petroleum Division, Finance Division, Oil and Gas Regulatory Authority, Sui Southern Gas Company Limited, Sui Northern Gas Pipelines Limited, Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Mari Energies and other stakeholders. During the meeting, the Sub Committee decided to give top priority to the gasification project for the remaining 42 villages near Badar Gas Field, District Ghotki. The estimated cost of the project is Rs617 million. The Special Secretary Petroleum Division, Finance Division officials and Chairman OGRA assured the Committee that Rs200 million would initially be released from the allocated Rs1 billion funds to start the project immediately. Managing Director Sui Southern Gas Company Limited informed the Committee that the company would provide its share of funding and begin technical planning, engineering work and procurement activities. It was decided that project activities would begin within ten days after the release of initial funds. The Committee was informed that remaining funds required for completing the project would be arranged without interruption. The Petroleum Division and Finance Division assured the Committee that financial issues would not become a reason for further delay. The Sub Committee also reviewed the wider issue of gas supply to villages located within five kilometres of gas producing fields across Pakistan. Officials informed the Committee that new policy guidelines are being prepared to implement the Prime Minister’s Directive and Supreme Court instructions regarding gasification of eligible villages. The Petroleum Division was directed to present a complete implementation plan in the next meeting. The plan will include details about funding arrangements, responsibilities of different organizations, district wise schedules and clear completion timelines for all remaining eligible villages across the country.

Leave a Reply

Your email address will not be published. Required fields are marked *