The Philippine retail sector remains “cautiously optimistic” for the second half of 2025, on resilient holiday spending and anticipated stronger government action to address weather-related disruptions, according to the Philippine Retailers Association (PRA).
“We’re a little bit cautious but optimistic. With Filipinos, Christmas is never canceled. That cultural consistency in spending behavior keeps retailers going,” said Alice Liu, president of the PRA.
She noted, however, that severe weather events, such as heavy rains and flooding, continue to weigh on consumer demand and mobility.
Liu, speaking at the recent 31st National Retail Conference and Expo (NCRE) in Pasay City, highlighted recent flooding as a key concern, which has diverted household income toward recovery efforts instead of discretionary purchases.
“When people’s homes are damaged, money that could have been spent on other goods goes into repairs and rebuilding,” Liu said.
“We’re hopeful that with the latest SONA [State of the Nation Address] and the President’s directive for LGUs [Local Government Units] to step up flood control, there will be real improvements. That could free up more disposable income for consumers,” she said.
Despite these challenges, Liu said retailers experienced a relatively strong first half, partly boosted by increased cash flow during the pre-election period.
The PRA is maintaining its full-year revenue growth outlook of 10 percent to 15 percent, aligning with the industry’s continued rebound following contractions in 2022 and 2023.
“2025 is shaping up to be a good take-off year. We’ve come a long way since the slump, and momentum is building,” Liu said, adding that individual companies are focused on hitting their own growth targets ahead of the peak season.
Retailers are already preparing for the traditional holiday surge, adjusting inventory and planning promotions to match demand, she said.
