MANILA - The Philippines' retail sector is expected to have a soft recovery in 2021 as COVID-19 related risks and uncertainties still hound the country, according to an industry group and an analyst.

In an interview with ABS-CBN News, Rosemarie Ong, president of the Philippine Retailers Association, said the prospects for the local retail sector may still be soft for some categories as long as the COVID-19 pandemic is still present.

"We have to be realistic. There are some sectors that are really very bullish, very optimistic about 2021. But generally, it will remain soft for as long as the virus is there," Ong said.

She noted retailers who sell food, home, personal care and health products will see brighter growth next year, as these categories posted a 50-percent surge in revenues even at the height of the pandemic.

Likewise, products used in work-from-home set-ups, like electronic gadgets and some furniture, are seen to be performing well.

Patrick Cua, Retail Intelligence Leader at NielsenIQ, said the sector's "softness" is only for the first half of 2021, and is poised to accelerate in the latter part of the year.

"We expect 2021 to be a bounce-back year, but we need to recognize that the first half was a much higher base. And as we gradually reopened the economy, consumer spending will return," he said.

Consumer spending fell by over 10 percent, dragged by the heavily affected retailers in the non-essential categories, he said, adding that there are still opportunities in this category.

Ong noted that the availability of a vaccine in the Philippines will greatly help in improving the prospects of the retail sector.

"So the confidence-building will take time until of course when everyone expects that a large number of the population will be vaccinated. So with that anticipation and the availability of the vaccine, I am sure people, businesses will be gaining more positive outlook for their jobs, their business, and the whole economy," she added.

Both Ong and Cua said enterprising Filipinos can still find business opportunities in 2021.

Ong said there was a rise in the patronage of community stores or sari-sari stores and convenience stores, both of which are reliable sources of essential products for consumers amid the mobility restrictions during the COVID-19 crisis.

For his part, Cua said food and health and safety products will remain hot commodities in 2021, but stressed these products need to be readily accessible both physically and digitally.

Aside from essential goods, people are also seen to buy more recreational products to keep them preoccupied, especially those who are still not confident to go outside.

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The Philippines has recorded 464,004 confirmed COVID-19 cases, as of Wednesday. The tally includes 9,048 deaths, 429,972 recoveries, and 24,984 active cases.

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