In 2021, despite the gradual re-opening of the economy, shopping malls continue to suffer from slow foot traffic as consumers avoid potentially busy venues with large capacity. For example, Ayala Malls reports that foot traffic remains at around half the level of that experienced pre-pandemic levels whilst Robinsons Malls reports that consumers are now making single-person purposeful visits of one hour or less rather than spending a full afternoon at the mall with the whole family.
SM Department Store will retain a strong lead in department stores in 2021. The brand strengthened its position in the first year of the pandemic by launching its official e-commerce store, ShopSM, as well as boost its presence on third party e-commerce websites such as Lazada and Shopee.
Despite the increasing presence of department stores on online channels, sales through e-commerce have not been able to offset the total current value decline experienced during the pandemic. Whilst the channel benefits from having a vast product assortment, this also means that it faces a wide range of competition, both from brand website as well as third party e-commerce players.
Following the major pandemic declines in 2020 and 2021, it will take some time for department stores to recover to pre-pandemic levels and is unlikely that the channel will do so within the forecast period. However, from 2022 onwards, department stores is set to return to a positive rate of current retail value growth, with this continuing in the coming years.
Remote personal shopping services have been one of the main features allowing department stores to manage their losses during the pandemic. As such, online personal shoppers are expected to continue to be a major part of the department store experience in the coming years.
Despite the growing popularity of e-commerce, some department store players believe that the in-store experience is still an integral part of the channel that can adapt to changing consumer behaviour and help attract sales. Thus, over the forecast period, players are anticipated to continue investing in displays and services that improve the overall shopping experience.
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Understand the latest market trends and future growth opportunities for the Department Stores industry in Philippines with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Outlets selling mainly non-grocery merchandise and at least five lines in different departments, usually with a sales area of over 2,500 sq metres and arranged over several floors. Example brands include Macy’s, Bloomingdale’s, Marks & Spencer, Harrods, Sears, JC Penney, Takashimaya, Mitsukoshi, Daimaru, Karstadt, Rinascente.See All of Our Definitions
This report originates from Passport, our Department Stores research and analysis database.
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