CEBU’S retail landscape in 2012 has shown some physical transformation with the construction of more commercial centers. Despite the opening of more neighborhood centers in certain strategic areas in the first half of 2012, which somehow influenced shoppers’ behavior, malls remain to be the preferred place for shopping, dining and recreational activities. Although some statistics would show a decline in the performance of some categories in the sector this year, retail remains very strong and will continue to drive the economy of Cebu.
The retail sector also complements the thrust to strengthen tourism in Cebu. As we see more new hotels, we also feel retail flourishing around.
Given the expected increase in tourist arrivals, continuing increase in OFW remittances and more BPO buildings being constructed as well as more vertical residential developments that are set to operate in the near future, retail plays a major role in sustaining these industries.
More competing offers opened in 2012. The convenience stores that proliferated around accessible locations like gas stations, near schools and hotels, affected the behavior of the market because of accessibility. Neighborhood centers with supermarkets have drawn people to also patronize dining outlets around the areas. Additional fastfood and casual dining outlets have proliferated along these developments. Neighborhood centers are commercial centers that have gross leasable area of less than 10,000 square meters.
Mall, Cebu traffic
In basic shopping, the opening of new supermarkets and hyper marts in location closer to highly concentrated residential areas, and with traffic in Cebu becoming more congested especially during peak hours, were manifestations that consumers, especially nearby residents, are getting attracted to these neighborhood centers.
Visits to malls, however, continue to be a top activity. However the patronage of just one or two locations was a change noted this year. Visits have become purposive and spurred by convenience.
Fashion shopping remains to be strong and a key driver of visits. With such a well-informed and updated market due to technology and the Internet, retailers are compelled to tap non-traditional marketing and digital media. Local brands have placed some efforts to improve their merchandise selections and store visual presentation. In anticipation to the entry of new foreign fashion brands with the opening of new malls in the coming years, existing retailers need to enhance their products and work doubly hard on marketing, in-store promotions and customer service.
Moving forward to 2013, the retail scene will be vibrant and dynamic. Additional gross leasable areas from regional malls will open to accommodate more concepts in fashion, food, entertainment and services. New brands are set to open here as they get attracted by the cosmopolitan lifestyle of the Cebu market.
Cebu, however, needs the sustaining market that would drive the retail activity. The residential developments with occupants in 2013 can become mall traffic. The new BPO buildings that will operate will have its office workers as captured market and patrons of nearby commercial establishments. Tourism and business conventions set to happen in Cebu will also contribute in sustaining the retail sector.
It is therefore along this movement where most of the real estate developers have thrown their thrust in developing mixed-use and using the retail component as an attraction to locators and as centerpiece of developments. As retail continues to be competitive, the challenge will rise beyond strengthening the market it serves, it should give focus in being consistent with the service it offers and in providing total customer satisfaction. (Joy Polloso Contributor)
No comments:
Post a Comment