Mall vacancy rates in the Philippines will rise to 12 percent this year, predicts real estate consultancy company Colliers.
The company says falling footfalls due to the Covid-19 pandemic and a move by consumers online are impacting the business of physical stores.
According to Colliers, mall vacancy rates in the Philippines are also rising because more retailers have created their own e-commerce platforms or joined major social media channels to boost online sales.
“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,” said Colliers Philippines.
Meanwhile, data from the Philippine Payments Management shows online payments rose significantly in April, with a recorded rate of 32.2 percent growth from 6.7 million InstaPay transactions.
However, the company’s survey from March found that more than 80 percent of respondents still want to keep shopping in brick-and-mortar stores.