Holiday spending to lift mall operators, retailers

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Photo from: BusinessWorld

By BusinessWorld

Holiday spending is expected to bring some much-needed cheer to Philippine mall operators and retailers, according to Colliers Philippines.

In a Oct. 27 report, Colliers said major mall operators are now reporting that foot traffic is now at 85-95% of 2019 levels.

“Consumer traffic is reverting to 2019 levels and we see more retailers now willing to take up physical mall space. Holiday-induced spending should further buoy the retail sector’s recovery, which should translate to higher mall rents and declining vacancies,” Joey Roi Bondoc, Colliers associate director for research, said in the report.

In anticipation of more consumer traffic ahead of the holiday season, Colliers noted that many retailers took up more physical mall space in the third quarter. For instance, Skechers and Superga opened in Rockwell’s Powerplant Mall, while Ever New Melbourne opened in Ayala’s Trinoma mall.

Collier said food and beverage, and clothing and footwear segments still dominated the physical space take-up in the third quarter.

At the same time, mall vacancies are still expected to go up to 16% by end-2022. Vacancy in Metro Manila malls inched up to 15.4% in the third quarter, from 15.2% in the first quarter of 2022.

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