RP’s rank as retail center improves

THE Philippines ranking as a destination of global retailers inched up, according to an international consulting firm.

In its 2009 Global Retail Development Index, A.T. Kearney said the Philippines climbed to the 25th spot out of the top 30 destinations, with the country garnering an index score of 41.

The country fell to the 26th spot last year due to rising inflation in Asia coupled with the US financial crisis.

The annual report ranks 30 emerging countries on a 100-point scale. The higher the ranking, the more urgent it is for retailers to enter a country to cash in on its consumers’ disposable income and shopping-spree impulses.

The survey is based on four variables: country risk, market attractiveness, market saturation, and time pressure. A country is measured on each variable from zero to 100, which is the highest score.

The Philippines scored lower in country risk with 28 points; time pressure, 29 percent; and market attractiveness, 31 percent. However, it scored higher in the market saturation category at 76 percent.

Other Southeast Asian countries like Vietnam ranked higher at 6th; Malaysia, 10th; and Indonesia, 22nd. The Philippines however, was ahead of Thailand, which placed 26th.

A.T. Kearney said countries in Asia are well positioned for an early recovery from the economic crisis.

“Domestic demand is holding up well in most major markets, [gross domestic product] growth is continuing at a moderate rate, and trillions of dollars of sovereign reserves are providing governments and state banks with tools for action,” the consulting firm said.

It added that Asian countries are also continuing their dramatic economic transformation. Domestic consumption is still a primary focus, a trend that should favor continued increase in retail over the long term.

“The global economic recession has not closed all windows of opportunity for organized retail in developing markets,” AT Kearney said. –Darwin G. Amojelar, Senior Reporter, Manila Times