Research and charity group Institute of Grocery Distribution (IGD) said the Philippines is showing strong potentials in the retail sector, with the domestic industry reporting robust growth.

In its latest report, the IGD forecasted SM Retail to record a Retail’s compound annual growth rate (CAGR) at 14.5 percent for 2016-2021.

According to Nick Miles, IGD’s head of Asia-Pacific, “There are great opportunities for modern retail growth in the Philippines. Local retailers are well established, with large format stores maintaining strong growth through network expansion.”

Miles said retailers are adding stores in major urban regions like Visayas and Mindanao and said that SM Retail’s strengths include its strong partnerships with local suppliers and its stores’ efficient placement, among others.

In addition, IGD noted SM Retail’s other specialty stores, notably Ace Hardware and Watsons, which allow the company to capture a more significant market share.

“SM Retail is expected to grow faster than its competitors to 2022, extending its leadership over the other players in the market,” Miles said.

Across Asia, IGD projected the region’s large-format retailers to grow 3.3 percent a year to 2022, with Vietnam, India and Philippines forecast to see double-digit growth from large format players over five years.

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