Divisoria sellers struggle to keep pace with online shopping

Deals and discounts online are drawing shoppers away.

A shopper looking for cheap clothes, accessories, or household items once had one obvious stop—Divisoria. Today, that same search can start and end on a smartphone.

That development is creating a tougher retail environment for Divisoria sellers, who now compete not only with nearby stalls but also with thousands of online shops offering similar products.

The Philippine Retailers Association (PRA) expects e-commerce sales to grow 10% to 15% this year, faster than the projected 5% to 10% growth for traditional retail.

The change is also visible in how Filipinos shop, with the Philippine Statistics Authority (PSA) finding that 36.7% of internet users aged 10 and above bought goods or services online in 2024, up from 23.7% in 2019.

Online shopping removes much of the hassle of going to Divisoria, letting customers compare prices, check reviews, use vouchers, and have their purchases delivered without leaving home.

Nearly 7 in 10 online buyers preferred delivery in 2024, according to the PSA.

The convenience can be difficult for physical sellers to match, particularly when online platforms offer aggressive discounts and promotions.

Divisoria still has an advantage that an app cannot fully replicate, however. Shoppers can inspect products themselves, negotiate with sellers, buy immediately, and browse several stores in one trip.

The PSA found that 71.7% of internet users who did not shop online still preferred physical stores, showing that traditional retail retains a strong customer base.

Recent reports of weaker sales among some Divisoria vendors, however, show why the change is significant to small retailers.

Some Divisoria sellers have already moved onto Facebook, TikTok, and online marketplaces, turning their stalls into another channel for reaching customers.

For Divisoria sellers, the challenge is no longer simply getting shoppers through the market’s crowded streets. They are now competing for the same customers wherever those customers choose to shop—including from the comfort of home.

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