London-based independent analytics and consulting firm GlobalData plc. said while online penetration will remain relatively low in the Philippines, the online grocery market is expected to grow at a compounded growth of 32.5 percent between 2020 and 2025 to become a P50.6 billion market.
“This follows the compounded annual growth rate of 62.3 percent recorded between 2015 and 2020 when the then nascent market expanded from a very low base,” it said.
With the rise of online grocery shopping, GlobalData said online grocery spending grew significantly in 2020, up 153.1 percent, due to the impact of the new coronavirus disease 2019.
Numerous grocers are partnering with third-party delivery providers to expand their delivery capacities.
AllDay Marts Inc. said based on GlobalData’s study,
AllDay Supermarkets now leads the mid-premium market segment in the country.
GlobalData said the supermarkets under this category mostly cater to the rising middle class because they offer a wide variety of products and brands at competitive prices.
“Most of these players also offer regular deals and promotions both instore and online, helping them to appeal to a wider spectrum of shoppers,” it said.
GlobalData defines mid-premium supermarkets as those which place more emphasis on quality and service. While competitively priced, the services include a solid selection of premium items.
“At the other end of the spectrum are value and value-mid cover players which put more focus on price and less of an emphasis on service and quality. Players in-between these two, with a balanced proposition and fairly standard range in terms of price and quality, are in the mid-market,” it said.
While three major players corner the supermarket segment, GlobalData said it sees “significant scope for AllDay and other players to grow into an expanding market as they open more stores.”
GlobalData’s study shows that AllDay is the “fastest growing supermarket operator in the Philippines,” posting a compounded growth of 62.5 percent from 2015 to 2020.
“GlobalData notes that innovative solutions, such as AllDay’s pioneering Personal Shopper Service–where customers send in their grocery lists via Viber with a personal shopper doing the work for them — are also helping to fuel growth because this strategy gives customers multiple options to buy online,” AllDay Marts said.
AllDay hopes to further boost its position in the supermarket segment as it plans to triple the number of its branches to 100 by 2026.
As of end-June, AllDay had a portfolio of 33 stores nationwide, with 24 stores in Mega Manila, six in Luzon (outside Mega Manila), and three in Visayas, with an aggregate net selling space of approximately 55,881 square meters (sq.m.)
