Despite assurances by manufacturers that prices of Noche Buena products and of basic necessities and prime commodities will not increase until the end of the year, Filipinos will be more meticulous on their Christmas shopping, keeping their baskets lean.
Steven Cua, president of the Philippine Amalgamated Supermarkets Association (Pagasa), said small grocery stores such as those comprising Pagasa have noted this shopping behavior among consumers even after the country broke out of the pandemic due to high inflation.
For Cua, revenge spending happened in malls, big retailers, restaurants and tourism but did not cascade as much to small grocery stores which serve the masses.
“Everybody wants to have a happy and merry Christmas but the rate at which prices is increasing is outpacing the purchasing power of Filipinos who tend to stick to basics. For Christmas, I think they will make do with what their budgets can purchase. Like always, they will have to be wise in their spending,” Cua said.
He said this is why groceries and supermarkets will continue to offer affordable variants, bundled products and discounts.
Cua said this is also one way for groceries to push out inventories towards the end of the year and introduce fresh stocks going into 2024.
Cua advised consumers eyeing mid- range priced products to try out other brands as an option.
“ Retailers are also more careful with product, size and brand selections. We delist items that do not sell well,” Cua said.
Cua said if manufacturers do not raise their prices, there is no reason for retailers to do so.
In a televised interview, Joey Concepcion, president and chief executive officer of RFM Corp. , said there will be no price increases on most of Noche Buena products.
Concepcion said prices of wheat and sugar have been stable and fuel costs are lower today than last year.
RFM is a market leader in pasta.
He added manufacturers have started pre- selling and loading Christmas products to distributors.
“One thing for sure is (that) consumers are not going to see any price increases. It’s a very competitive environment right now … we have a lot of competitors and we all want to grab market share which would benefit consumers. We want consumers to spend … if the products are more affordable,” Concepcion said.
Concepcion said manufacturers have hedged out as far as next year and secured raw materials at prevailing prices.
“We’re able to hedge in case there are any further upticks towards next year, especially with the ongoing conflict. Hopefully it doesn’t last that long,” he said.
