Malls in Philippines unlikely to follow US stores to extinction
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Malls in the Philippines are unlikely to be replaced by online channels soon, as millennials seeking to spend on experiences drive demand for restaurant space, a property consultant said Monday.
Food and beverage now account for 40 percent of mall space, compared to 60 percent for retail. The sector used to account for just 20 percent, according to data from Leechiu Property Consultants.
“These malls in Asia have one thing in common, they are utilitarian malls,” said the consulting firm’s CEO, David Leechiu.
Malls in the Philippines, unlike in the US, are very accessible to consumers, located in “high-density” areas with office and residential buildings.
Citing a Credit Suisse study, Leechiu said 20 to 25 percent of malls in the US may close in the next 5 years as online shopping grows.
Questions & Answers
Q.What is driving the demand for restaurant space in Philippine malls?
What is driving the demand for restaurant space in Philippine malls?
Millennials seeking to spend on experiences are driving the demand for restaurant space. This trend is a key factor in why malls in the Philippines are unlikely to be replaced by online channels soon.
Q.How has the proportion of food and beverage space changed in Philippine malls?
How has the proportion of food and beverage space changed in Philippine malls?
Food and beverage now accounts for 40 percent of mall space, compared to 60 percent for retail. Previously, this sector only used to account for 20 percent of the total space.
Q.Why are Philippine malls considered more resilient than those in the US?
Why are Philippine malls considered more resilient than those in the US?
Unlike US malls, Philippine malls are highly accessible to consumers, being located in high-density areas with both office and residential buildings. This makes them utilitarian centres for the local population.
Q.What proportion of US malls might close in the coming years?
What proportion of US malls might close in the coming years?
According to a Credit Suisse study cited by David Leechiu, 20 to 25 percent of malls in the US may close in the next 5 years. This is largely due to the growth of online shopping.
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