Foreign Retailers Expand Across the Philippines

Jan 2025

Foreign brands are increasingly entering the Philippine retail market, particularly in provincial areas, as they set up shop in new retail centers like Megaworld’s Upper East Mall in Bacolod City. According to Colliers Philippines’ 2025 Philippine Property Market Outlook Report, the country’s consumption-driven economy is attracting foreign retailers, who are becoming more aggressive in securing physical mall spaces.

Notable entrants include Japan-based Nitori and Australia-based Anko, both of which are expanding their presence in the Philippines. The report highlights that food and beverage (F&B) retailers are also capitalizing on the Filipino market’s strong affinity for food, with projections indicating that foreign F&B brands will occupy 31% of the total space for F&B retailers in Metro Manila within the next year. Additionally, around 70% of new fashion brands entering the market are expected to be foreign clothing and footwear companies.

As a result of this influx, the retail vacancy rate is anticipated to decrease slightly from 15.1% to 15% next year. Developers are responding to this demand by redesigning retail spaces to offer more immersive experiences, such as expanded food halls and upgraded cinemas. Major renovations are underway at prominent malls like SM Mall of Asia and SM Megamall, while Ayala Land Inc. is pursuing a significant investment plan for its Glorietta and Greenbelt properties. This shift towards key areas outside Metro Manila reflects a broader trend in the retail sector as it adapts to altering consumer behaviors and preferences.

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Orissa International helps companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 companies that includes distributors, resellers, system integrators and local manufacturers, that we have built through advising and guiding more than 5,000 companies with their market expansion into the ASEAN region over the last 25 years.

Orissa International is headquartered in Singapore, with additional offices in Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.

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