How mall operators and retailers should realign strategies amid softer demand due to the COVID-19 pandemic and the imposition of physical distancing protocols
Colliers believes that the COVID-19 pandemic and the lockdown imposed are likely to redefine Metro Manila shopping. From March 17 to 30, 2020, we conducted a survey of more than 100 respondents from Luzon and Visayas, to get insights on the public’s shopping preferences. Results showed that 80% of the respondents still chose brick-and-mortar retail indicating a possible pent up demand after the lockdown ends.
We believe that most respondents did not factor in the extent of the pandemic and its potential impact on consumers’ mobility. Colliers believes that even if the government fully relaxes the lockdown imposed throughout Metro Manila, subsequent personal distancing protocols likely to be implemented will reduce consumer traffic. This in turn, is likely to result in a slower absorption of retail space all over Metro Manila. Colliers projects vacancy rising to 12.0% in 2020 from 9.8% in 2019. In our opinion, the reduced mobility, observance of physical distancing, and aversion towards the use of physical currency present opportunities for mall operators and retailers all over Metro Manila. These are likely to form part of the new normal in Philippine retail.
Download the full report to read our survey results-supported insights and recommendations.