Taiwan retail stores plan to expand business scale

The nation’s effective control of the virus bumped up retail sales to USD136.22 billion 

According to CBRE Taiwan, more than 60 percent of local retail stores aim to expand their business scale, as sales look promising in 2021 following a mild increase last year, in spite of the COVID-19 pandemic, reported Taipei Times. 

CBRE’s report indicated that 63 percent of retail stores showed plans to revive expansion arrangements that were scrapped last year due to the pandemic, while 44 percent intend to boost sales via the Internet.  

Retail sales in 2020 slightly increased by 0.2 percent to TWD3.86 trillion (USD136.22 billion), as the nation’s rapid control of the coronavirus led to a quick recovery in the second quarter of last year, said Man Chan, an analyst at CBRE.  

On the report of the firm’s survey of retail investment in the Asia-Pacific region, Taiwan’s investment attractiveness is much higher than the regional average at 49 percent.  

Nevertheless, 30 percent of local stores still indicated putting off expansion plans, lower than 39 percent elsewhere.  

Chan said that more than 50 percent of retail stores threw out their expansion plans after experiencing a double-digit percentage revenue shrink at the peak of the pandemic in April 2020.  

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Encouraged by the nation’s promising economic outlook and correction in rental fees, many retailers have become enthusiastic again in seeking expansion sites.  

The Directorate-General of Budget, Accounting, and Statistics forecasted the nation’s economic growth to increase to 4.64 percent this year, a new record since 2014. Private consumption was predicted to rise 3.74 percent, reversing a 2.37 percent decline last year.  

Ping Lee, a CBRE analyst, also said in the report that retailers would turn to e-commerce, as online retail sales last year reached TWD341.8 billion, surging 19 percent from a year earlier.