By The Freeman | Philstar
More foreign retailers are expected to enter the Philippines, including Cebu, this year, capitalizing on the country’s promising retail sector despite the disruptions brought about by the online retail platform.
According to Colliers Philippines, the interest of foreign retailers in entering the Philippines is largely driven by the enactment of the Retail Trade Liberalization Law, which eases restrictions on foreign ownership of retail businesses.
“Experiential retail and unique product offerings will dominate the market,” said Joey Roi Bondoc, director for research at Colliers Philippines.
He added that the efforts of retail giants to renovate and improve their physical mall aesthetics and expand leasable spaces have also caught the attention of global retail names.
Major developers like Ayala Land, SM, and Robinsons are renovating malls, including SM Megamall, SM East Ortigas, Robinsons Forum, and Ayala Center Cebu. Ayala Land has allocated P13 billion for upgrades to key malls, such as Glorietta and Greenbelt in Makati, Trinoma in Quezon City, and Ayala Center Cebu.
Cebu is one of the hotspots for foreign retail brands due to its positive performance in the post-pandemic era, said Robert Go, former president and spokesperson of the Philippine Retailers Association (PRA-Cebu).
Go, who also owns Prince Retail, noted that Cebu’s retail sector is set to benefit from active consumer spending, starting with the Sinulog Festival this January, the upcoming mid-term elections, and continued government support, further bolstered by rising cash remittances from Overseas Filipino Workers (OFWs).
“The retail sector is optimistic about continued growth,” said Go, highlighting the anticipated surge in consumer spending during the May mid-term elections and government assistance programs like the Ayuda Para sa Kapos Ang Kita Program (Akap). The Akap initiative, supported by a P26 billion allocation, will be implemented through the Department of Social Welfare and Development (DSWD) in partnership with the Department of Labor and Employment (DOLE) and the National Economic and Development Authority (NEDA).
Go also noted that low inflation, coupled with sustained overseas remittances, is expected to drive retail sales further.
However, he cautioned that a potential rise in the dollar exchange rate could impact non-food prices, particularly oil.
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