Philippine Retailing 2019 Q2 | Page 2

Cover Story PHILIPPINE RETAILING FROM PAGE 1... BIG NAMES IN RETAIL, TECH AND DATA... Ms. Elysha Young, and Zebra Technologies Retail Solutions Marketing Lead Mr. George Pepes. Panel talks with next gen retail leaders and brand influencers Two panel discussions will also take place during the two-day conference, with next generation leaders to share fresh ideas in leading their respective businesses for Day 1 and brand influencers and how they help hype up brands and develop reputation within the industry for Day 2. Panelists for Day 1 include Belo Essentials Director Cristalle Belo-Pitt and Quorom International Inc. (Toby’s Sports) President Mr. Toby Claudio, while influencers Rod Magaru and Jako de Leon under the Blogapalooza will join Day 2 panel discussion. For more focused discussions on specific topics, NRCE will introduce this year the Retail Spotlight, featuring talks on the new shopper currency, maintaining product safety beyond the basics, designing experiences to optimize customer’s emotional system, blockchain, and e-commerce models, among others. The Stores Asia Expo, the twin activity of the NRCE conference will feature solutions and state-of-the-art technology including Retail Solutions, E-Commerce & M-Commerce, Shop Fittings & Store Design, Digital Marketing, Commercial and Real Estate Developers, Web Developers, Non-traditional Advertising, Financial Services, Storage and Distribution, HR Solutions, and Billboard Locations among others, to help retailers enhance and expand their business operations. FROM PAGE 1... RETAIL SECTOR BENEFITS FROM... sales reported by retail establishments and restaurants point to the fact that people now have more money to spend as a result of the hefty PIT (personal income tax) cuts under TRAIN, which is now benefiting 99% of our taxpayers. The Tax Reform for Acceleration and Inclusion (TRAIN) bill was signed into law by President Rodrigo R. Duterte in December 2017. TRAIN is the first package of the Comprehensive Tax Reform Program (CTRP). 2ND QUARTER 2019 Platinum sponsors for this year’s NRCE include PLDT Enterprise, Globe Business, Wilcon Depot, Bench, SM Retail Inc., Megaworld, and Aptos. There will also be on- floor seminars called Retail Lab inside the exhibit area, featuring discussions on essential and new tools and strategies for the industry. NRCE is the biggest and the longest-running retail industry event in the country, organized by the Philippine Retailers Association. Other sponsors and partners include Robinsons Malls, Unilab, Penshoppe, Araneta (Gold); Ayala Malls, CMG Retail, Inc (Bronze); Zebra, Checkpoint, and Sportshouse (Sponsors), The Philippine Star (Official Newspaper); Business World (Official Media Partner); Turkish Airlines (Official Airlines); Springtime Design Limited (Official Brand Consultants); DZRH (Official Radio Partner); iManila (Official Social Media Partner); Vasavah (Official IT Consultant); Rich Graphix Brand, Heritage Multi-Office Products, Chatbot Ph, United Neon (Expo Sponsors); WGSN Limited, Blogapalooza Inc. (Session Sponsors) and; The Manila Times, Innity Philippines, Chinoy TV, Business Mirror, Crossover (Media Partners). For registration, sponsorship and exhibit inquiries, please contact the PRA Executive Secretariat at 687-4180, 687-4181, 687-4985, or email:  [email protected]/ specialprojects@philretailers. com. TRAIN reduced the personal income tax of individuals earning gross annual income of P250,000 and below to zero, while those with earning above that threshold are subject to graduated tax rates of 20%-35% effective 2018, and 15% to 35% effective 2023, depending on income bracket. He noted that sales of convenience, grocery stores, restaurants and even real estate developers increased as the TRAIN Law helped increase consumer spending. The DoF earlier estimated that TRAIN implementation resulted in a combined P12 billion worth of additional income per month for individual taxpayers, with most of them compensation earners. Business World, 5/9/2019 WELCOME NEW PRA MEMBERS! CHG Global Inc. (World Balance) is a brand of active-lifestyle footwear, clothes and accessories for men, ladies, and children established in 1980. Since then, it has established a good reputation among Filipino consumers for its good quality, stylish designs, and affordability. 2 PhilGPS is a Philppines based company specializing in real-time Global Positioning System (GPS) and providing advanced asset tracking solutions. The company aims to provide mobile asset owners with a straight-forward and uncomplicated approach to managing their assets from remote locations using the latest tracking technology. Zap is a leading start-up company which provides a merchant-branded, customizable, loyalty program to over 800 businesses in the Philippines. By using Zap, businesses can track real-time data, acquire members with in-store branded app, and automatically remind members to come back. Print & Mount is a one-stop shop for retail design solutions needs. They are one of the pioneers in color separation services, then eventually adapted to the needs of their clients by offering design services, large format printing, fabrication, pop, shopper marketing solutions, retail store build-up, digital signage, etc. THE BEST IN RETAILING INDUSTRY HONORED AT THE 21ST OFR AWARDS The biggest names in the retail industry gathered in a dazzling and exciting night as the Philippine Retailers Association revealed and awarded the best of the best in Philippine retailing at the 21st Outstanding Filipino Retailers (OFR) Awards on June 20, 2019 at the Makati Shangri-La. This year, the PRA awarded 10 retail brands and stores that epitomized the model of a successful retailer in terms of growth, creativity, and best business practices. One of the highlights of the night was the presentation of the 2019 PRA President’s Award to Jollibee Foods Corporation Founder and Chairman Mr. Tony Tan Caktiong as the “Pillar of Brand Globalization.” “Mr. Tan Caktiong was chosen as this year’s awardee for his great success and influential contribution to the Philippine food retail sector by creating a super brand which brought to the world the true Filipino taste and the culture of spreading joy through food,” said PRA President Rosemarie B. Ong during the awarding. Fashion brand Penshoppe garnered two awards during the night, including the most-coveted Retailer of the Year for its excellent business practices in terms of sales growth, stores operation, product marketing & promotional campaigns, omnichannel adoption and corporate social responsibility and as Outstanding Visual Merchandising Campaign for its effective use of colors, texture, signage, props, product groupings and/or lighting to attract attention of shoppers. The Promising Retailer of the Year on the other hand was awarded to menswear & footwear store Commonwealth PH for its significant impression on both customers and fellow retailers as a new entrant in the market. Metro Retail which hails from Visayas was awarded the Regional Retailer of the Year. The Shopping Centers of the Year were: SM Megamall (Large), Megaworld Uptown Mall (Medium), and SM Center Las Piñas (Small); while the Supermarket of the Year was awarded to Robinsons Supermarket. T h e newly-revamped OFR is coming back from a hiatus last year, with a new logo and updated category formats i n c l u d i n g E-Commerce Excellence, Outstanding Marketing Campaign, and Outstanding V i s u a l Merchandising. Aside from Penshoppe, w i n n e r s under the new categories were CLN as the E-Commerce Excellence awardee for its overall efforts in its operations, digital marketing efforts, logistics, and credibility and Levi’s for its Outstanding Marketing Campaign featuring a heartwarming advertisement about the love of a Father to his blind son. The PRA also recognized two stalwarts in the retail industry during the awards night. Toby’s Sports Founder Roberto S. Claudio and Philippine Chamber of Commerce and Industry President and Mother of Philippine Franchising Alegria “Bing” Sibal-Limjoco were conferred with Platinum Awards for their significant and influential roles and contributions to the Philippine retail industry. “Their passion, leadership, and longtime dedication to the PRA have led to the development of the local retail industry as a whole,” President Ong said. Running on its second decade, the 21st OFR is a joint undertaking of the PRA and the Department of Trade and Industry (DTI) since 1997. Through the OFR, the PRA and DTI aim to encourage Filipino retailers to adopt world-class standards and practices to become globally- competitive. For the last two decades, it has awarded over 200 Filipino retailers and shopping centers. The OFR Awards received 62 entries this year and finalists were: Wilcon Depot, Mercury Drug, Sunnies Studios, Metro Retail, Robinsons Easymart, Robinsons Selections, De Oro Pacific Home Plus, Robinsons Place Iligan, SM Lanang Premiere, Megaworld Venice Grand Canal Mall, SM Supermarket, Robinsons Department Store, BAYO, Shopee, Robinsons -ISLAND FAVORITES VM Campaign, Robinsons – I LOVE WELLNESS VM Campaign, and Jansport. The 21st OFR is supported and sponsored by SM Retail Inc., Jollibee Foods Corporation, The Philippine Star, and The Manila Times. 3