Elections boost SM, Divisoria sales
MANILA, Philippines – The Sy-led SM group, which operates the country's widest network of mall and retail chains, benefits from strong demand for consumer goods like food and drinks during the election period.
SM Hypermarket, which has 32 outlets nationwide, experienced slow sales in the first quarter of the year, when its stores were closed for a number of days due to the Holy Week.
However, after the local campaign period kicked off on March 29, sales started to pick up.
“April [sales] will be higher than previous months,” said Robert Kwee, president of Hypermarket, at a press briefing following SM's stockholders' meeting on Thursday, April 25.
“There is traditionally a rise in items associated with election campaigns, mostly food items like beverages, snacks, etcetera, which are used by those who campaign and those who watch the polls,” he added.
For May, Kwee said sales are expected to go up by 10% to 20%.
It's Divisoria for lifestyle products
But SM couldn't say the same thing about lifestyle product sales.
Its Department Store arm, which has 46 outlets nationwide, is losing to bargain haven Divisoria, which stands as the runaway winner in terms of election-spending for non-food items like clothes and shoes, its president George Mendiola said.
Mendiola noted most consumers go to Divisoria for these products because they are cheap there.
“In the provinces, what they would normally have are the tournaments which would require uniforms that are especially ordered,” he said.
“Also, I know that the rubber shoes that they distribute to the players are the fake ones [sold in Divisoria],” he added. – with reports from Aya Lowe/Rappler.com