Transforming PH retail scene: More experiential, less transactional

Colliers believes that mall operators and retailers need to cash in on the festive season and seize greater spending across the country.

- By JOEY ROI BONDOC

Mall operators continue to refresh retail spaces, and we see this trend across the Philippines as developers entice more mallgoers and encourage them to stay longer and spend more. Colliers believes that the traditionally strong fourth quarter is an opportune time for retailers and mall operators to ramp up their refurbishment and redevelopment strategies. We see greater physical mall space absorption moving forward as foreign brands continue to open shop in the Philippines while existing brands continue to expand within and outside Metro Manila.

With continued mall space take-up from local and foreign brands, mall operators should take the lead in ensuring that retail spaces are more immersive and experiential while proactively taking into account the tenants' size and fit-out requirements.

Meanwhile, mall operators should also look at the viability of featuring co-working facilities within their retail establishments. As the result of a Colliers USA survey highlighted, workers in a flexible space within a mall tend to stay longer in a mall, spend more, and have a greater propensity to visit retail shops more frequently. This is a win-win for mall developers, retailers, tenants, and operators of co-working spaces.

F&B RETAILERS DOMINATING MALL SPACE TAKE-UP Food and Beverage (F&B) retailers continue to dominate mall space take-up. Colliers sees the expansion of foreign retailers including those from home furnishing and personal accessory segments.