With inflation on the uptrend despite the government's efforts to contain it, consumers are now turning for relief from high prices through the DALI hard discount groceries.
This is exactly what hard DALI discount stores, a Swiss-originated business model that got into the country after the pandemic, are now doing– putting a tough fight with existing retail chains by using their own brands and running their outlets without airconditioning, fancy shelves (just boxes where the goods are positioned) and not using commercial brands that rely heavily on advertising. Instead it uses private labels, which account for 20% of its merchandise.
Even among its employees, its generosity is much talked about as it pays permanent employees (after a few months of OJT), regular wages over the minimum, including benefits due them, a clear career path by not advertising its recruitment process but only through word of mouth from contented personnel or through it website. Because its wages are above minimum and incentives are beneficial to its permanent employees, this had been draining the workforce of existing retail giants (that lose their contractual employees and managers) to DALI.
Except for those undergoing on-the-job training, DALI’s workers are regular employees thus they get monthly salaries, paid leaves, bonuses, other incentives, job security and a chance to go up the ladder depending on available positions.
The October 2020 data of the Philippine Statistics Authority said over 2.4 million minimum wage earners are in Metro Manila and over 8 million are paid below the minimum wage, said the Partido ng Manggagawa citing the PSA report.
Minimum wages in Manila increased to P610 a day in 2023 from P570 previously but elsewhere in the country, the daily minimum wage is even worse.. The Philippines has been included in the list of 32 countries by Deed.com, an online portal providing human resources services, as having minimum wages below $500 a month.
Even then, the Vice World News said the Philippines is one among those that hire employees under 6-month contracts rather than as regular employees, resulting in exploitation. Contractual employees account for 24.3 percent, most of them coming from the poorest and least educated sector. Even college graduates accept contractualization given the high unemployment and underemployment, the report was cited by Bilyonaryo recently. This enables many employers to save costs, keeping them for only five months to circumvent the law that mandates regularization for those continuing work after a six-month probationary period. The law is also circumvented by outsourcing workers through an agency.
DALI has a bias for hiring women, who earn less than men and are often victims of job exploitation. The Asian Development Bank said in March that women will receive 45% of the 4,300 jobs created by its $15 million investment in DALI. It also wishes to attract overseas Filipino workers so they do not need to go abroad for work.
Business blog spot, Bilyonaryo, reported that Lucio Co, owner of Puregold (noted for its low prices) is seriously facing Dali’s challenge head on, by slowing down the rise of DALI, (into which the Asian Development Bank invested $15 million) Co’s ubiquitous Puregold supermarket, which has kept bigger and older rivals SM and Robinsons Retail on their toes since its opening 25 years ago, has slashed prices and stepped up promotions, including product tie-ups and giveaways, Bilyonaryo said.
The move is aimed at slowing down the rise of DALI, a Swiss grocer backed by the Asian Development Bank, by allocating a designated area in every Puregold supermarket, called Mas Pinababang Presyo Araw Araw, “showcasing products offered at prices equivalent to or lower than DALI.”
Earlier this year, Co introduced another feature known as the “Panalo Zone,” where promotional items, including product tie-ups and giveaways, and discounted products are prominently displayed. These sections are positioned side by side, right between the cashier and the main shelves, so shoppers will not miss these deals.
“Malakas po ang ugong na sobrang mura sa DALI,” confided a cashier at one of Puregold’s outlets in Paranaque. “Kung sa basketball, defense at offense ang galaw ng Puregold,” says a 30-year old male staffmember who was refilling a shelf of snacks and chips.
An industry insider said Puregold is not the only one feeling the impact of DALI. Some retailers have reportedly reached out to major suppliers, expressing concern that the hard discounter is selling products below the manufacturer’s suggested retail price.
These retailers are urging suppliers to intervene and encourage DALI to adhere to the correct pricing. In the case of Coca Cola, which was among those approached, it said it cannot cease supply to DALI as it pays the full manufacturer price, even though the retailer sells Coca Cola below the suggested retail price.
My take
About time the giant retailers feel how frustrating and heartbreaking it is for consumers like me to be buying items from them when they jack up prices almost weekly, if not every other two days.
About time, too, that they would have competition so that they would learn to improve their business operations (they keep cutting on personnel to reduce cost, to the detriment of buyers who have to queue for a long time because of lack of baggers, packers and cashiers) and for those being constantly hired as contractual, they must be regularized so they can enjoy all benefits due them under the Labor Law.
They have grown so much, they need to think of the other people on this planet.
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