Retail to Go Through Major Adjustment in 2022 with Over 190K sqm Supply Expected: CBRE

• 24 January 2022
• Local News
• 1316 Views

Given the uncertainty of the pandemic, the retail sector remains under pressure in 2022, with the new shift towards professionalisation and new retail design concepts to stay alive in the competitive market, according to the recent CBRE yearly report.

In 2021, the retail market was severely impacted by the pandemic with a sharp reduction of footfall, oversupply issues, and the increase of e-commerce trends.

Over 12 new retail stores or equal to 88,000sqm were completed in 2021 with 20 new brand entrances, while the occupancy rate stayed at only at 67%.

In 2022, at least 190,000sqm of retail supply is expected with at least four new malls to be completed including Chip Mong Sen Sok, Chip Mong 271, Prince International Plaza, and Lucky Pavilion Mall.

Given the oversupply and low footfall, the rental reduction offer will remain for 2022 while retailers will lock in long-term contracts due to low rental prices.

The market is also expected to witness the growing professionalisation of certain segments including convenience stores, petrol stations, pharmacies, and FMCG outlets.

New retail formats and concepts will also become a trend as there is a necessity to stand out due to the competitive market, the report added.

• Analysis