International real estate services firm Cushman & Wakefield reported that the Philippines’ local retail scene continues its steady growth as foreign brands still choose to set up shop in the country’s urban centers.
In its report “How Global Brands are Shaping the Metro Manila Retailer Landscape,”it shows that over the past three years, 102 new foreign brands entered the Philippines, 68 of which opened between 2017 to 2018, states the report. An additional 34 brands opened during the period of January-November 2019.
As for existing foreign retailers, the report says that these brands took advantage of the country’s “upbeat retail sector” by actively expanding, given that the number of shopping malls also continues to grow. In terms of space, mid- to high-end shopping malls in Metro Manila has occupied 8.9 million square meters as of end of 2019. Quezon City, with a population of 2.9 million (roughly 23 percent of Metro Manila), has the largest share of the existing supply.
By 2022, shopping mall space in Metro Manila is expected to reach 9.8 million sq m, with major expansions happening in Bay Area, which covers the cities of Manila, Pasay and Parañaque, the report stays.
The incessant addition of retail space is just one reason why the Philippines is defying the “retail apocalypse” happening elsewhere, especially in the United States where, according to the report, almost 6,000 stores closed two years ago.
Foreign brands choose the Philippines also because of its high consumer spending; ideal demographics; booming tourism industry; improvements in its business climate; and overall strong macroeconomic fundamentals.
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