^add to that, formal businesses get to earn VAT credit for their purchases while informal retailers don't claim VAT credits coz most of them are not even taxpayers. so 12% lower na agad ang acquisition cost ng formal biz. and kung mas malapit sila sa supply chain, original sale (sale direct from manufacturer) is also taxed lower.
wala pang transpo cost ang formal biz coz more often than not, delivered to them ang paninda nila. then meron din silang right na ibalik sa supplier/manufacturer ang unsold and expiring goods, kaya minimized ang losses sa spoilage.
in more extreme cases, some supermarkets/convenience stores even get paid by the manufacturers so the manufacturers can get the most prominent shelves in the store or for their products to be displayed conspicuously in the store.