Colliers Philippines, the leading investment management company, predicts a spike in retail spending in key property hubs outside Metro Manila, notably Pampanga, due to holiday-induced spending and the impact of the Retail Trade Liberalization Law.
The trend of “revenge spending,” the compensatory surge in consumer spending to compensate for pandemic-induced limitations, has been on the decline as life returns to normal. However, the forthcoming holiday season is anticipated to sustain retail activity, primarily in the fourth quarter of each year, driven by employee bonuses and increased remittances from overseas Filipino workers.
Despite this positive outlook, Colliers Philippines emphasizes the ongoing challenge of maintaining foot traffic and consumer spending in physical retail spaces. These strategies are expected to play a pivotal role in driving retail spending through the end of 2023 and into the first quarter of 2024.
Colliers also suggests that mall operators and retailers should collaborate in creating activity centers and organizing events such as wedding fairs, bazaars, and housing summits to entice more shoppers to visit malls, extend their stay, and spend more.
Additionally, as more foreign and local retailers express interest in mall spaces, particularly in new malls opening in Q4 2023, Colliers advises mall operators to carefully reassess their retail mix to optimize spending and maintain consistent foot traffic over the long term.
In response to changing consumer habits, Colliers recommends that mall operators and retailers work hand in hand to enhance the omnichannel shopping experience and to redesign physical mall spaces and improve online shopping platforms to cater to this evolving trend.
Mall operators and retailers are urged to improve what they can offer, enhance the shopping experience, and adapt to the evolving consumer demands, both in-store and online. –Julianna Egenias (AUF Intern)