New business registrations in Central Visayas declined by 7.75 percent in the first quarter of 2026, driven by elevated inflation, rising operating costs, and economic uncertainty that tempered entrepreneurial activity, according to the Central Visayas Regional Economic Situationer.
Registration Decline Across the Quarter
Data from the Department of Trade and Industry’s Business Name Registration System showed that business name registrations fell to 24,870 in the January-to-March period, down from 26,958 a year earlier. The decline was consistent throughout the quarter, with registrations dropping 6.3 percent in January, 12.8 percent in February, and 5.4 percent in March.
Despite the slowdown, the report noted that registrations remained at a substantial level, indicating that entrepreneurial activity continued across the region.
Retail Trade and Food Services Hit Hard
Retail trade, excluding motor vehicles and motorcycles, remained the largest source of new business registrations with 11,562 registrations, but this was 13.2 percent lower than the 13,321 recorded in the same period last year. Food and beverage service activities also posted a sharp decline, falling 18.1 percent to 2,746 registrations, which the report attributed to higher operating costs and concerns over consumer spending.
Real estate activities bucked the trend, with registrations increasing 13.6 percent to 2,042, while other personal service activities remained relatively stable.
Cebu Draws Global Brands
Even as businesses grapple with higher costs and softer consumer sentiment, international and local retailers continue to view Cebu as one of the country’s strongest expansion markets outside Metro Manila. Many brands are opening new stores as retail landlords expand their footprint across the island, betting that Cebu’s consumer spending will remain resilient, supported by steady overseas Filipino remittances, a growing middle-income population, a recovering tourism sector, and a robust business process management industry.
Chinese collectible toy retailer Pop Mart International Group Ltd. recently opened its first Visayas pop-up store at Ayala Center Cebu, using the province as a test market for the next phase of its Philippine expansion. The Beijing-based company said the temporary store, which will operate until December, will help gauge consumer demand in one of the country’s fastest-growing regional economies after establishing outlets in Metro Manila.
“We see Cebu as a gateway to the broader Visayas market,” said Marilyn Villamayor, Pop Mart’s country head.
Retailers Target Regional Growth Centers
The company’s entry reflects a broader trend among international retailers increasingly targeting Cebu as competition intensifies in Metro Manila and retail opportunities in regional growth centers become more attractive. Retail executives have cited Cebu’s expanding middle-income population, recovering tourism industry, and robust business process outsourcing sector as key drivers supporting discretionary spending. Those factors have helped position the province as one of the country’s most resilient consumer markets despite global economic uncertainty, trade tensions, and uneven consumer demand.
The growing interest has also prompted mall operators to diversify their tenant mix by introducing more lifestyle and experience-driven concepts that appeal to younger consumers.
Known for its “blind-box” collectible toys, Pop Mart is betting that Cebu’s growing collector community and rising demand for character-based merchandise extend well beyond the capital. The company is among the latest global brands using regional cities as growth engines as retailers broaden their expansion strategies across the Philippines.
Cebu Province Leads Regional Registrations
Cebu Province posted the highest number of new business registrations in Central Visayas at 10,564, up 11.4 percent from a year earlier. Bohol also registered growth of 10.5 percent, reaching 6,406 registrations. The region’s highly urbanized cities — Cebu City, Lapu-Lapu City, and Mandaue City — collectively recorded 7,900 new business registrations, representing a 41.9 percent increase from the first quarter of 2025. The report said the growth in urban areas may reflect the continued expansion of service-oriented enterprises, tourism-related businesses, and small-scale entrepreneurial ventures.
Outlook: Headwinds Ahead
Looking ahead, the report warned that retail trade may continue to face headwinds as elevated inflation, rising fuel prices, and higher logistics costs constrain household spending and increase operating expenses for businesses. It added that higher food input costs, electricity rates, and labor expenses could reduce profitability for some establishments, potentially slowing expansion plans or leading to temporary closures. The possible onset of El Niño could also raise electricity consumption and utility costs for commercial establishments.
