Retailers urged to tap delivery platforms

CEBU, Philippines —  As the retail sector gears up for reopening on Monday, June 1, 2020, players are advised to partner with several delivery platforms, while boosting their presence online.

“We recommend that mall operators expand their e-commerce platforms. Retailers, meanwhile, should maximize mall developers’ online sites and social media platforms. In our opinion, retailers should remain relevant by ramping up client engagement efforts and partnering with delivery platforms,” said Colliers International Philippines in its latest assessment under the COVID-19 battered economy.

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.

Eroding consumer confidence due to a reduction in Overseas Filipino Workers’ (OFW) remittances and an increase in unemployment will likely temper any rebound.

“While we see opportunities amid the uncertainties, the central bank- forecasted drop in economic output in 2020 is likely to drag down consumer confidence which may impact retail space absorption,” it added.

This is likely to be compounded by the USD3.0 billion to USD6.0 billion (P153billion to P306 billion) drop in OFW remittances and rise in unemployment projected by various government agencies and officials.

The central bank is projecting a 7.8 percent economic growth in 2021 and this should result in a retail demand upswing, Colliers projected.