By: Manila Standard
Colliers International Philippines, a real estate consultancy company, expects mall vacancy to rise to 12 percent in 2020 from 9.8 percent in 2019 on reduced consumer traffic and increased preference for online shopping amid the coronavirus (COVID-19) pandemic.
Colliers Philippines said even if the government fully relaxed the lockdown imposed throughout Metro Manila, the implementation of physical distancing protocols would likely reduce consumer traffic in shopping malls.
The health protocols will likely lead to a slower absorption of retail space across Metro Manila. Colliers also expects a significant number of physical retail shops to remain closed for an extended period due to COVID-19.
Colliers Philippines sees more retailers creating their own e-commerce websites, using the sites of major mall operators, or popular social media platforms such as Facebook and Instagram to expand the reach of their products.
“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,” Colliers Philippines said.
For retailers of high-end brands, Colliers Philippines said they should be more innovative to stay at the top of consumers’ minds, including offering home deliveries or personal shoppers.
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