Retail in Metro Manila is Experiencing Post-Pandemic Growth
Many business opportunities are seen as a result of post-pandemic growth in the retail industry—particularly in Metro Manila. Here’s how you can leverage it.
With major mall developers reporting that consumer traffic has returned to 90 to 100% of pre-COVID levels, the retail sector—particularly mall operators and retailers—is now experiencing steady growth post-pandemic. In fact, some mall operators and retailers even believe that they are now generating stronger revenues compared to the pre-pandemic numbers.
Furthermore, insights from Colliers show that the retail sector can expect growth for the rest of the year. This will then result in a marginal increase in lease rates as more tenants take up mall space. However, because of the increase in tenants, there is concern regarding having substantial supply of mall space in the second half of the year.
Given the current situation, there are multiple business opportunities that entrepreneurs can take advantage of that can contribute to the growth of the retail sector.
Securing Prime Locations
As more and more people head to malls and other retail spaces due to the easing of pandemic restrictions, retailers who are willing to put up brick-and-mortar shops will increase in number in order to take advantage of consumer traffic.
Colliers further notes that Quezon City, the Bay Area, and Alabang are seen as prime locations for physical stores, due to these locations still having substantial vacancies in their retail spaces.
However, these vacancies will decrease in number as time goes by, which will inevitably increase rent prices. Developers can use this as an opportunity to invest in retail outlets and open more spaces for retailers to grow their businesses in.
Opportunities From Foreigner Retailers
Colliers has likewise seen an increasing demand for physical space particularly from foreign retailers. Mall operators can leverage that by offering retail spaces that can entice foreign retailers that are planning to enter the local market.
Colliers says this can be done by taking note of the size requirements of foreign retailers, as well as their fit-out requirements. Providing these needs will increase the chances of being chosen by foreign retailers as the location of their physical spaces.
Will This Affect Online Shopping?
As mall operators and retailers continue to rebound from their losses during the pandemic, will their growth affect online shopping, which benefited greatly during the pandemic?
Colliers says that online shopping will continue to remain relevant in the country even as consumer traffic grows steadily for malls and other retail spaces. This is particularly true for young shoppers, who are more well-versed with the needed technology to do their online shopping.
Nevertheless, there have been brands that opted to operate both online and in physical locations. Given the increase in growth of in-store shopping, this is an option that brands can explore.