Wednesday, April 4, 2012
CEBU’s increasing population, the influx of foreign tourists and the acceleration of property development are the key drivers of its thriving retail industry, according to real estate advisor CB Richard Ellis Philippines (CBRE).
“Given the prevailing consumer demand and its absorptive capacity, Metro Cebu is now the apple of the eye of both regional and national retailers,” CBRE said in a recent market study.
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CBRE said Metro Cebu’s retail sector is buoyed by the expansion of the tourism industry, increased number of real estate developments, growth of the BPO sector and the other industries that thrive in the south.
For 2011 and 2012, CBRE Philippines estimates about 120,000 square meters (sq.m) of new office space for BPO tenants, which could generate employment for about 19,000 workers. The firm said this provides the “cue to retailers to expand their business and partake of this growth opportunity.”
Retail hub
CBRE described Cebu as a maturing major retail hub in the southern Philippines that has the potential to become the newest retail destination in Asia, with the right push and consistent support from both public and private sectors.
The study showed Cebu retailers are directly benefiting from the upsurge in tourist arrivals from shopping requirements as well as increased demand from the Horeca (hotels, restaurants and catering services) sector.
The rapid build-up in property development (office space and residential) in Cebu has also helped the retail sector.
Mixed use
“The retail sector thrives with the proliferation of mixed use office-retail buildings and residential condominium developments. Retail sales growth will be buoyed by the demand coming from residents and employees,” the study said.
CBRE Philippines estimates 49,400 sq.m of BPO space that will be completed in the next two years in Cebu IT Park.
Philippine Retailers Association (PRA) Cebu former president Melanie Ng, in earlier interviews, said the performance of the sector despite global problems can be attributed to the increased purchasing power of Cebuanos, especially those employed in BPO and IT companies.
The optimism of the sector, she added, is also evident in the number of new malls that will open soon and the continued entry of international brands.
Forever 21, an American-owned fashion chain opened in Cebu last year. Fast Retailing Co. Ltd., on the other hand, is also eyeing Cebu for the second phase of Uniqlo’s expansion in the Philippines, according to reports.
Published in the Sun.Star Cebu newspaper on April 05, 2012.
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