Mall vacancy rates in the Philippines set to rise
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Mall vacancy rates in the Philippines will rise to 12 percent this year, predicts real estate consultancy company Colliers.
The company says falling footfalls due to the Covid-19 pandemic and a move by consumers online are impacting the business of physical stores.
According to Colliers, mall vacancy rates in the Philippines are also rising because more retailers have created their own e-commerce platforms or joined major social media channels to boost online sales.
“By expanding online strategies and partnering with apps to facilitate seamless delivery, retailers should be able to offset any softer retail demand due to the Covid-19 pandemic and the government’s implementation of a lockdown,” said Colliers Philippines.
Meanwhile, data from the Philippine Payments Management shows online payments rose significantly in April, with a recorded rate of 32.2 percent growth from 6.7 million InstaPay transactions.
However, the company’s survey from March found that more than 80 percent of respondents still want to keep shopping in brick-and-mortar stores.
Questions & Answers
Q.What is the expected mall vacancy rate in the Philippines for this year?
What is the expected mall vacancy rate in the Philippines for this year?
Real estate consultancy company Colliers predicts mall vacancy rates in the Philippines will increase to 12 percent this year. This rise is attributed to various factors affecting physical stores' business.
Q.What factors are contributing to the increase in mall vacancy rates?
What factors are contributing to the increase in mall vacancy rates?
Falling footfalls due to the Covid-19 pandemic and consumers moving online are impacting physical stores. More retailers have also created e-commerce platforms or joined social media to boost online sales.
Q.How have online payments changed recently in the Philippines?
How have online payments changed recently in the Philippines?
Data from the Philippine Payments Management shows online payments grew significantly in April. InstaPay transactions recorded a 32.2 percent growth, increasing from 6.7 million transactions during that period.
Q.Despite the move to online, do consumers still prefer physical shopping?
Despite the move to online, do consumers still prefer physical shopping?
Yes, Colliers' survey from March found that over 80 percent of respondents expressed a desire to continue shopping in brick-and-mortar stores. This suggests a continued preference for physical retail.
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