Retail Sector Fails To Make The Grade Of Regional Peers

Reflecting our expectations of a weakening consumption story in the Philippines, we are forecasting relatively weaker retail sales growth in 2012 as compared to 2011. Although the Philippine organised grocery retail sector is relatively underdeveloped compared to regional peers such as Thailand and Malaysia, the sector does not boast the same exciting growth appeal as that of the other underdeveloped retail markets in the region due to the lack of foreign capital in the sector. Nonetheless, sector growth will remain reasonably strong over our forecast period and we expect the outperformance of the hypermarket sector to 2016.

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