Supermarkets facing higher costs even as revenues rise
SUPERMARKETS are dealing with higher operating costs as pandemic restrictions ease, with an industry official saying that the pickup in sales is sometimes not reflected in the resulting profits, especially for smaller stores.
Steven T. Cua, Philippine Amalgamated Supermarkets Association, Inc., president, told BusinessWorld Live on One News channel that supermarkets are still adapting to unpredictable conditions as a result of the coronavirus disease 2019 (COVID-19) outbreak.
“It is difficult for us right now, those which are not big (supermarket) chains. It is difficult for us to make sure that the bottom line is clear in view of sales. Even if we have a spike in sales, sometimes our costs increase, our cost of operation increase. We’re still in transition,” Mr. Cua said.
Mr. Cua said some supermarkets expanded their operating hours in October in the hope of capturing more business.
“There are adjustments still made on our end to make sure that there is a balance between sales and bottom line,” Mr. Cua said.
“We have better sales (compared to 2021) because of the reopening of the economy. But again… there are new COVID-19 variants coming out,” he added. — Revin Mikhael D. Ochave