THE ECONOMIC ENVIRONMENT

OF RETAILING
Retail Sales
Retail sales reflect the consumption
component of the economy which is the biggest
bulk of the countrys GDP. Typical consumption
pattern could, somehow, be seen in the retail
sales of giant food and beverage firms; food
being on the top of the list in an average
consumer basket.
Retailing if vital to the economy
Retailing is a major force in the economy.
Over and above the products and services they
provide to individual consumers and businesses,
retailers also give employment to a lot of people,
facilitate the efficient and effective flow of
products and services from the producers to the
ultimate users, and help other industries and
businesses as well, along the supply chain
channels. Specifically, retailing is vital to the
economy for the following reasons:
1. Most of our disposable income is spent in
retail businesses.
2. Retailing provides employment to millions
of individuals
3. Retailing adds value to products, creating
the utilities of place, time, possessions,
and information.
4. Retailing accounts for a significant portion
of the total marketing cost of products.
5. Retailing holds many opportunities for
enterprising individuals in all types of
retail businesses.
6. Retail establishments improve and
enhance the economic activities of the
immediate community where they are
located, and indirectly, of the communities
where their suppliers are located.
7. Retailing, through its attendant marketing
activities like aggressive promotions,
distribution, and logistics management
create awareness, consumer information,
and education (e.g. through television,
radio and print ads.) and ultimately,
increase consumption.
Economic Indicators
Strategically, the focus is principally on
the economic environment because empirically,

economic power begets political power, and vise

versa. The following are the economic indicators
about the Philippines:
1. Gross Domestic Product (GDP)
2. OFW Remittances
3. Unemployment Rate
4. Exchange Rate
5. Budget Deficit
6. Competitiveness Rating
Richest men in the Philippines are retailers
1. Henry Sy1st
2. Lucio Tan2nd
3. Jaime Zobel de Ayala3rd
4. John Gokongwei, Jr.6th
Top Filipino owned retail companies
1. Jolibee Jolibee is the largest restaurant
network in the Philippines with a total of
1,287 stores. From a single company
selling burgers, Jolibee has grown big
over the past years and has transformed
itself into a conglomerate with 15
subsidiaries and affiliates due to its
diversification to pizzas, donut and
French bread, and Chinese food.
2. San Miguel Corporation It is the
largest publicly listed food, beverage and
packaging company in the Philippines.
Established in 1890 as a single-product
brewery, the company today has over 120
facilities in the Philippines, Southeast
Asia, China and Australia.
Employment Opportunities in Retailing
Retail establishments provide great
employment opportunities from the warehouse
to the display and store areas and parking space
(i.e. over and above the job opportunities among
various companies or firms along the supply
chain).
Structure of Retailing and Distribution
Channels in the Global Market
A
more
useful
approach
for
understanding the global retail marketplace is
classifying retailers on the basis of their retail
mix, the merchandise variety and assortment,
services, location, pricing, and promotion
decisions made to attract customers.