According to Kotler and Keller, retailing is defined as all activities which involve selling of

good or services directly to the final consumers for personal or non-business use. Retailing
industry played a significant role in the growth of the private sector as well as boosts the
countrys economy. In addition, remittances from Overseas Filipino Workers (OFW), sustained
growth of the business process outsourcing (BPO) industry, and the lower inflation rate resulted
in increased purchasing power of the consumers which encouraged them to buy more often
than the usual. Thus, retailers decided to expand further their businesses to target a wider
audience (Euromonitor International, 2016).
Based on the Philippine Statistics Authority data, the retail sector contributed 18 percent
to the national output in 2015 which is a significant increase of five percent from the year 2014.
In the first quarter of the year 2016, there is a 6.9 percent GDP growth, in which it can be
expected to have a brighter future ahead as the retail sales growth rises and to be more
maintained by the strong private consumption. Also, the entry of more foreign retail companies
in the company has been providing a large boost to the industry. The growing number of
foreign brands coming to the country creates an effective and healthy competition with the local
brands (Formoso, 2016).
Although there is a significant growth of sales in both grocery and non-grocery retailing,
grocery retailers have more impact on the countrys retailing industry, mainly because it offers
products which are essential to most consumers (Euromonitor International, 2016).
Supermarkets, for instance, are preferred by the Filipinos to purchase their groceries.
Households who lives in urban areas shop for groceries frequently to replenish food, health
and beauty products, household maintenance and supply, and so forth (AC Nielsen, 2005).
The consumer behaviors in purchasing goods and services from retailers can be
influenced by concepts related to economics. The same with the retail players wherein the
number of good and services being offered can be affected also. For instance, SM
Hypermarket, may have encountered several situations affected by these economic factors
which will be discussed further in this essay.
According to Investopedia, hypermarket is defined as a retail store that combines a
department store and a grocery supermarket in which offers a large variety of products, food
and non-food items, to the consumers such as appliances, clothing and groceries. The idea
behind this store is to provide and accommodate all the goods they need under one roof.
Economic concepts such as the supply and demand and the opportunity cost are some
of the common factors being faced by the consumers every time they go to retail stores.
Decision-making of the consumers and sellers are also influenced by these concepts. What
products to be purchased?", how many products to be supplied in a market? are the common
questions when making decisions when in a market.

References
(n.d.).
AC Nielsen Study. (2005, February). Executive summary on in-focus: Supermarkets.
Boundless. (n.d.). Impacts of Supply and Demand on Businesses. (B. Business, Ed.)
Retrieved September 21, 2016, from
https://www.boundless.com/business/textbooks/boundless-businesstextbook/economics-and-business-2/introduction-to-economic-systems27/impacts-of-supply-and-demand-on-businesses-151-7840/
Euromonitor International. (2016, January). Retrieved September 20, 2016, from
Euromonitor International Website: http://www.euromonitor.com/retailing-inthe-philippines/report
Formoso, L. (2016, June 25). (R. Mercurio, Editor) Retrieved September 20, 2016,
from The Philippine Star:
http://www.philstar.com/business/2016/06/25/1596290/retail-spending-seenhike-share-gdp
Gutierrez, B., & Jegasothy, K. (2010). U.P. Diliman Journals Online. Identifying
Shopping Problems and Improving Retail Patronage among Urban Filipino
Customers. Retrieved September 20, 2016, from
http://www.journals.upd.edu.ph/index.php/pmr/article/viewFile/1924/1850
Kotler, P., & Keller, K. (2009). Marketing Management (13th Edition). Upper Saddle
River, NJ: Prentice-Hall.
NetMBA: Business Knowledge Center. (2010). Opportunity Cost. Retrieved
September 21, 2016, from NetMBA: Business Knowledge Center:
http://www.netmba.com/econ/micro/cost/opportunity/
The Economist. (n.d.). Economics Terms. Opportunity Cost. Retrieved September 22,
2016, from http://www.economist.com/economics-a-to-z/o