Philippine retailers experiencing coronavirus-related sales slump
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The Philippines’ largest retail landlord SM Supermalls says retailers’ sales have dropped both at home and in China due to the coronavirus crisis.
According to ABS-CBN, local sales of the group fell by 10-20 percent in the first few weeks of the coronavirus outbreak as people avoid shopping and eating out in the Philippines for fear of exposure.
In Mainland China, where SM operates malls, sales have slipped by up to 50 percent in tenant’s stores.
At the same time, other Philippine retailers have witnessed a 30-50 percent decline across the “total retail environment”, according to Roberto Claudio, vice chairman of the Philippine Retailers Association.
“That drop will go down into billions (of pesos) in terms of lost sales and revenues,” said Claudio. “If this goes on toward the end of the year, it is going to be devastating for most retailers and malls.”
The Philippines has confirmed three coronavirus cases, all visitors from Wuhan City in the central province of Hubei.
Questions & Answers
Q.What is the sales impact for SM Supermalls, specifically in the Philippines and China?
What is the sales impact for SM Supermalls, specifically in the Philippines and China?
SM Supermalls has seen local sales in the Philippines drop by 10-20 percent due to people avoiding shopping and eating out. In Mainland China, tenant stores in their malls have experienced sales declines of up to 50 percent.
Q.How do these sales drops compare with the wider retail sector in the Philippines?
How do these sales drops compare with the wider retail sector in the Philippines?
Other Philippine retailers have reported a larger decline, with sales falling by 30-50 percent across the total retail environment. This indicates a more widespread impact beyond just SM Supermalls.
Q.What is the potential financial implication of these sales declines for Philippine retailers?
What is the potential financial implication of these sales declines for Philippine retailers?
The vice chairman of the Philippine Retailers Association, Roberto Claudio, stated that these drops will amount to billions of pesos in lost sales and revenues. He warned that if this continues, it will be devastating for most retailers and malls.
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