Vacancy rates for shopping malls in the Philippines is expected to rise

Colliers believes that the pandemic has changed consumers’ shopping behaviours

According to a forecast by real estate consultancy Colliers, shopping mall vacancy rates will grow by 12 percent in 2020, reported Retail News Asia.

They said that the drop in footfalls because of the outbreak and the growing acceptance of purchasing items online will influence the business of physical stores.

The rise in mall vacancy rates is also attributed to the fact that most retailers have now opted to develop their own e-commerce platforms or improved their social media strategies to boost sales online.

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“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.

Moreover, a Philippine Payments Management report revealed that online payments grew substantially in April by as much as 32.2 percent, which is around 6.7 million InstaPay transactions.

On the other hand, the same company also discovered that 80 percent of respondents still prefer to do their shopping physically, based on a survey conducted in March.