Supermarket sales remain buoyant amid crisis on steady demand for food items, which account for the bulk of merchandise in store shelves.

Steven Cua, president of the Philippine Amalgamated Supermarket Association  Inc., said sales for food did not drop at all despite the economic difficulties.

We (supermarkets) are not feeling the pinch of recession. Food expenditure remains  a priority among Filipinos even in difficult economic times. But because of the crisis, people eat out less, which is good for supermarkets since they buy more food items.’ said Cua.

The association has also seen a noticeable shift in consumers’ preference. They now go for more affordable brands that offer the same quality, unlike before when they buy top-of-the-line brands.

Cua said prices in supermarkets had been generally unchanged since October last year.

‘Twelve months ago, prices were picking up. The market was going haywire because of the rice crisis. But all these settled. Since October last year, prices were steady, there was no movement,’said Cua.

‘We told members not to increase their prices but instead rationalize their operations so they can lower their cost and remain viable,’ he added.

Cua said the margins for food in regular supermarkets in urban areas now ranged between 7 and 12 percent and from 9 to 15 percent in big supermarkets like SM.

The margin for regular supermarkets eight years ago were between 5 and 10 percent. ‘We cannot move our prices nor have higher margins because the mini-malls and talipapas (street stalls) also buy from supermarkets so we have to keep prices relatively low,’ said Cua.

He also noted a shift in market share in non-food items, as consumers opted for more brands that were more affordable. The shift, he said, was more evident in personal care and beauty products segment.