After a lackadaisical performance during the pandemic, the country’s retail sector is currently experiencing a phenomenal rebound mainly because of the continuation of revenge spending in the post holiday, entry of more retail brands and flagship brands.
Joey Roi Bondoc, research manager of Colliers Philippines said the rebound is because people enjoy greater mobility these days as they are more free to go to the malls restaurants and other establisments.
“Revenge growth is getting a huge lift because of the opening of more flagship stores, revival of interest in experiential retail, more foreign retailers occupying mall space, consumption-led gross domestic product growth and income tax cuts to result in greater disposable income,” said Colliers Philippines research head Joey Roi Bondoc in the company’s recently held Philippine Property market briefing for the first quarter of 2023 in Makati City.
Bondoc noted that there was vast improvement in terms of human traffic from 50-60 percent of pre-Covid levels up to 90 to 100 percent in the first quarter of 2022. Furthermore, he observed a proliferation of flagship stores in Glorietta 3 (Foot Locker), Powerplant Mall (New Balance), SM North EDSA (SM Watsons’ 1000th branch).
According to Colliers, there will be a 2.5-percent growth in rents this year after a 11-percent growth in 2022. According to the Philippine Statistics Authority, the hotels and restaurants segment posted a growth of 28 percent in 2022 from a measly 4.6 % in 2021 in the growth per consumption segment. “The rebound is due to greater mobility,” Bondoc said.
Rising in the east
In the eastern part of the National Capital Region (NCR), the latest brands that will establish their presence in the Pasig-San Juan area include Fridays, Dean and De Luca, Hush Puppies, Harlan+Holden, Crocs, MN+LA and Vitos barbeque.
To maximize the boom brought by revenge spending and at the same time achieve a stronger branding position, the Bistro Group recently opened six new restaurants at the East Wing of the Estancia Mall to satisfy diverse palates: Italianni’s, Texas Roadhouse, Randy’s, Denny’s, TGIFridays and Modern Shanghai. Plus, there’s also Buffalo Wild Wings which has been operating in the mall since 2015.
Italianni’s will surely be a hit among Filipinos who love to eat Italian food such as the classics like the Spinach Artichoke Formaggio, Spaghetti Meatballs, Quattro Stagioni and Chicken Italianni’s.
For steak lovers, Texas Roadhouse is the place as it serves hand-cut steaks, fall-off-the-bone ribs, made-from-scratch sides and their famous freshly-baked bread. Expect also an occasional line dance from the staff to keep the dining energy up.
The ever reliable Denny’s is ready to satisfy the hunger pangs from breakfast to lunch, snacks, dinner and late-night All-American Slam, Mom’s Spaghetti, South Carolina Fried Chicken and Denny’s Share Four All.
Located at the Royalton, Capitol Commons, TGIFridays is a lovely place to unwind for folks who are looking for American-themed food, legendary drinks, and genuine personalized service, bartenders who possess a highly-charged vibe.
LA’s iconic donuts, Randy’s, provide that delightful sweetness from fluffier, airier and ginormous donuts for the sweet tooth.
For Chinese cuisine lovers, Modern Shanghai hits the spot when on the lookout for dishes that are delicious, comforting and familiar such as Braised Pork Knuckle and Braised Pork Belly; Xiao Long Bao, Steamed Hakaw Shrimp Dumpling, Roasted Crispy Pork, among others.
Capturing the retail opportunities
Colliers urged retailers and landlords to capture the low-hanging retail opportunities.
For the retailers, Bondoc urged them to lock-in spaces in prime locations, capture rising consumer interest for experiential retail, take advantage of the increase in disposable incomes and tourist arrivals and spending and ramp up omnichannel strategies.
Meanwhile, landlords should expand transit-oriented retail in key areas outside Metro Manila, establish flexible workspaces in malls, explore the viability of retail REITs and seize the demand from foreign realtors entering the Philippine market.