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CEBU CITY, Philippines — With relaxed restrictions and the holidays drawing near, malls and other retail establishments here should brace for consumer spending to return to its pre-pandemic levels.
Real estate service provider Colliers reported that malls in the country began experiencing a rebound in the number of consumers visiting and spending in brick-and-mortar shops and in other retail segments.
“We now see the resurgence of high-density retail segments such as family entertainment centers, and this should result in greater traffic in Cebu malls,” said Joey Roi Bondoc, associate director and head of Research for Colliers.
The upcoming holidays would also help boost the retail sector’s path to recovery following the COVID-induced economic crisis, Colliers added.
In turn, they advised developers in Cebu to take advantage of this development in order to attract more customers to visit their stores and spend.
They suggested that local mall operators to curate retail mixes, establish future-proof high-density retail, and utilize activity centers.
“More retailers are now willing to take up physical space, which should bode well for retailers and mall operators,” said Bondoc.
“We are optimistic that vacancy will improve by 2024 and this should lift mall lease rates within and outside Metro Manila,” he added.
While experts expressed optimism over a sustained improvement in the Philippines’ retail sector, they continue to caution players of prevailing threats and challenges.
According to Colliers, inflation, supply chain disruptions, and fears of global recession will likely hinder the sector’s expansion.
As a result, they recommended to regularly monitor retail segments vulnerable to surges in inflation.
In the meantime, the global real estate firm believed major economic hubs in the country, like Metro Cebu, would have a ‘stronger-than-expected economic growth’, which could benefit the retail sector.
“We also see greater potential for the retail sector of Metro Cebu as the leisure sector starts to recover after more than two years of slump. The recovery of Cebu’s tourism sector is likely to chip into the rebound of the retail sector,” explained Bondoc.
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