Ng: Entry of new retail players signifies growth

CEBU, Philippines - The upcoming entry of more retail players in Cebu, in time for the opening of Ayala Center Cebu’s (ACC) biggest expansion towards the end of this year, doesn’t threaten the local retail players.

Rather, this is “a good sign” of a promising retail sector here.

Philippine Retailers Association (PRA-Cebu) past president Melanie Ng said that local retail players are even looking forward to the opening of more foreign and established brands, which is an indication that big retail players are putting their confidence in the Cebu market.

Recently, Cebu Holdings Inc. (CHI), the developer of Ayala Center Cebu shopping mall announced that it will open its P2.9 billion mall expansion facility by the fourth quarter this year.

CHI President Francis O. Monera said the P2.9 billion expansion project occupies 2.5 hectares with total leasable area of approximately 36,500 square meters.

"The development will adopt the existing mall's mix per level, with upgraded zones and higher scaled brands," Monera said.

Clavel Tongco, ACC division head, said that the expansion will have a total of 200 stores in addition to the 450 stores of the existing mall.

The first level will house premium foreign brands like Zara and Gap, as well as staple European and American brands ranging from mid-priced to high-end fashion. More popular foreign brands will be housed at the second level.

Among the confirmed locators is Rustan’s, which will have a three-level retail space.

Earlier, CHI announced its plan to construct a second mall in Cebu, located within the 24-hectare Cebu IT Park.

Monera said the master planning of the second shopping mall is now on the drawing board and plans are expected to materialize within this year.

ACC’s Phase 2-B project is an extension of the mall, utilizing the south surface parking area and is expected to incur CHI  at least P2.8 billion. CHI is the developer of ACC.

In 2012, ACC registered an occupancy rate of 98.4 percent, and higher sales and rent per square meter. The mall contributed a total revenue of P750 million to CHI.

Ng said that the retail players in Cebu are generally enjoying good growth rate performance as retail activities are becoming more dynamic these days due to the improved purchasing power of the Cebu consumers and the growing tourism sector.

A report from Colliers International revealed that retail development in Cebu heightened further, with more mall establishments underway.

At present there are over 30 shopping malls on the island province, including the newest addition to SM City shopping mall chains, the SM Consolacion totaling 57,000 square meters in GLA (gross leasable area), and the 29,000-square-meter J Centre Mall in Mandaue City.

According to the report, in other areas, new constructions and expansion plans by major developers are being laid out such as the Ayala Center Cebu extension (36,000 sq m), Robinsons Galleria (56,000 sq m), and SM Seaside City at the South Road Properties (240,000 sq m).

Meanwhile, the Gaisano Group, a well-known retail developer in the Visayas region, remains to position its projects in focused markets outside the Cebu City proper, with four new mall developments in the pipeline.  (FREEMAN)