Pandemic Gives Break to eCommerce

Even though malls have opened in almost all cities and towns in the Philippines, the effect of the coronavirus disease (COVID-19) pandemic is still present. Mall and other retail owners can still feel the pressure on their back since their establishments are still suffering loss due to the pandemic.

Whether their place is now on General Community Quarantine (GCQ) or Modified General Community Quarantine (MGCQ), a more relaxed quarantine category, people still tend to stay at home and avoid public places especially malls to prevent catching the said disease.

Thus, some malls in the country are now improvising strategies as they use E-commerce as an alternative way for them to earn.

In Manila, the capital city of the Philippines, the total retail space is 7.3 million square meters, twice the size of the world renowned New York City’s Central Park.

A total of 12% retail vacancy rate were said to increase in Manila this year while for the first time since the global financial crisis, rents will seriously go down.

With the surge in growth of the online retail and e-commerce industry in the Philippines, some of these spaces may be put in good use.

A unit of Ayala Land Inc. is planning to convert their shopping centers to e-commerce facilities and medical clinics while SM Prime Holdings Inc., was said to be leasing out some of their parking lots for future long-term car storage.

AyalaLand Logistics also revealed that their shares fell as much as 2.3% in Manila trading Thursday. (MLC)