E-COMMERCE AND EXPERIENTIAL RETAIL GROWTH POTENTIAL PROMISING
According to the latest quarterly retail report from global real estate service provider, ColliersInternational Myanmar, there is an unprecedented opportunity for the country to use e-commerce to propel the retail sector. “While the country’s e-commerce future looks favourable, a huge amount of work from the government remains, particularly in improving the legislative framework, information and communications technology, and payment infrastructures,” said Mr. Paul Ryan Cuevas, Research Analyst for Colliers International Myanmar.
In the meantime, the role of malls and physical stores will remain crucial. Given the strong development pipeline for 2019, along with the shift in consumer preferences towards modern retail developments, the real estate service firm encourages both developers and retailers to rethink their projects and start differentiating their offerings with more emphasis on experience and convenience. Prospects for large-scale shopping malls and lifestyle-oriented centres remain strong.
Meanwhile, the citywide occupancy rate reached the 90% level at the end of Q4 2018. The continuous entry and aggressive expansion of foreign brands should help buoy the overall take-up rate for the succeeding year. By the same token, average rent declined at USD31.4 psm per month. Further introduction of higher quality projects should support premium rents in the next 12 months. Looking ahead, as more international quality supply comes online, Colliers advises developers to target new and innovative concepts to the market. “It is no longer a focus on sales per square foot but experience per square foot,” said Mr. Cuevas.