BIG BOX shopping often implies bulk buying – a method that would suit the typically large Filipino household. But the local consumer culture is also known for its sachet mentality, which makes mom-and pop and sari-sari stores perennially popular among rural and urban neighborhoods.
Beth Funelas of SM Hypermarket, Inc., says that convenience, the main draw of small retail cubes, can also be found in the big box. Turning BusinessWorld’s question on its head, she says, ‘What disadvantages does [the big box] have? You have everything you need under one roof. It’s a one-stop shop.’
Indeed, aside from grocery items, hypermarkets often have a wet market, hardware, furniture, appliances, stationery, toys, clothing, shoes, and even luggage sections.
Additionally, speciality shops such as drugstores, laundry booths, salons and bills payment kiosks often take shelter under these retail giants, enabling shop to carry out multiple errands trip. Some even have arcades and play areas to entertain children while their parents are shopping.
However, marrying the town market and the department store solves only part of the convenience problem. To make themselves more accessible, some Metro Manila big boxes have placed themselves along major roads and commuting routes: A Makro membership shopping outlet sits squarely between two MRT stations in Cubao, and a Shopwise branch fronts the Araneta Coliseum.
Meanwhile, an S&R and an SM Hypermarket await those in transit at the North Avenue terminals, and hardware big boxes
MC Home Depot and Ortigas Home Depot duke it out on the same block in Ortigas Center.
But compared to the numerous minimarts and small grocery boxes that dot the metro’s map, most mega stores still stand at a farther distance from the majority of villages and subdivisions. The handful of super stores outside Metro Manila, though close to major urban centers, are likewise located near city limits.
Their characteristically titanic size could also be a reason why some shoppers continue to shy away from big boxes. While consumers may like the feeling of freedom that comes with endless variety, the super store’s mile-long aisles and the long lines at the checkout counters can make one long for coziness and familiarity of the corner store.
‘Smaller supermarkets will always have an advantage because of their proximity to their shopper base and their market connectivity: they tend to know their customers [better],’ said Carlos V. Cabochan, president of the Philippine Association of Supermarkets, Inc., in an e-mail interview.
The SM group’s recent move to smaller format retail outlets such as SaveMore gives weight to the general impression that big box stores are not the most accessible sources of household needs and supplies. Moreover, Mr. Cabochan believes that small groceries, sari-sari stores, wet markets, and talipapa will continue to survive precisely because they are focused on fewer products and sell goods in smaller quantities.
Despite their well-advertised discounts, it seems that the big box, for all its consumer comforts, may have outmaneuvered a few retail categories, but it has yet to outsmart the local tingi culture.