GRA Retail Pulse Issue 1 - Grow Retail Asia

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RETAIL PULSE ISSUE 1 PHNOM PENH 2020 END YEAR RETAIL ESTATE MARKET OVERVIEW RESEARCH IS AT OUR CORE Grow Retail Asia (GRA) welcomes you to the successful launch of “Retail Pulse”, where we share highlights, insights, data and trends on Phnom Penh’s growing and forever changing Retail landscape. With a blend of retail expertise, mathematical precision and analytical excellence, our proprietary research and data monitors the market and discovers opportunities for growth within Phnom Penh’s retail sectors. INSIDE ISSUE 1 GRA’s first issue of “Retail Pulse” provides an overview recap of 2020’s Retail Estate market, including insight, data and analytics on the following: ISSUE 1 RETAIL TERMINOLOGIES 2020 RETAIL ESTATE DELIVERIES A glossary providing definitions to key New notable retail estates that have terms, indicators, and metrics used in began operations in 2020 by name, the retail estate sector. submarket and retail format. 2020 RETAIL SUPPLY 2020 SUPPLY BY RETAIL FORMAT End year 2020 total existing retail End year 2020 total retail supply in supply in Phnom Penh with a quarterly Phnom Penh broken down by retail breakdown of new supply in 2020. format. Michael Vong Gary Lam Managing Director Director, Business Development +855 313 799 799 +855 98 856 611 [email protected] [email protected] RETAIL PULSE ISSUE 1 PHNOM PENH 2020 END YEAR RETAIL ESTATE MARKET OVERVIEW ISSUE 1 RETAIL TERMINOLOGIES As GRA aims to actively contribute to the transparency of the markets, we have highlighted the following definitions and indicators used within issue 1 of “Retail pulse”, so that our readers can understand what the indicators mean: NET LETTABLE AREA (NLA) The internal floorspace in a building that is occupied by retailers exclusive of non leasable space such as hallways, building foyers, building equipment and other utility areas. SHOPPING MALLS Large retail centers located in established residential suburbs usually with a total net lettable area between 50,000 sq.m -85,000 sq. m. Extensive coverage of full range retail needs with several entertainment and leisure attractions from a stronger lineup of international retailers. SHOPPING CENTERS Medium sized retail center that sells a full variety of general merchandise, mostly apparel however, not as exhaustive as Shopping Malls with much focus on regional and / local retailers. Total net lettable area is between 20,000 sq. m to 40,000 sq. m. RETAIL PODIUMS A small retail center that blends two or more non-retail commercial developments such as residential and / or office tower(s). Total net lettable area is not more than 30,000 sq. m., with retail offerings usually limited to F&B, services and general retail. COMMUNITY MALLS Local retail centers offering convenience-based goods with a heavy focus on food & groceries. Total net lettable area is less than 10,000 square meters with approximately 15-20 retailers and typically anchored by a grocery store. Michael Vong Gary Lam Managing Director Director, Business Development +855 313 799 799 +855 98 856 611 [email protected] [email protected] RETAIL PULSE ISSUE 1 PHNOM PENH 2020 END YEAR RETAIL ESTATE MARKET OVERVIEW 2020 RETAIL ESTATE DELIVERIES Phnom Penh has witnessed the RETAIL CENTER SUBMARKET RETAIL FORMAT opening and operations of 6 new retail centers within 2020. Q1 set the mark The One Mall South Community Mall for the completion of Samai Square and TL Sky Mall, followed by TK 313 Quayside North Community Mall Central and Khalandale with Samai Square North Community Mall operations commencing in Q3. 313 TK Central North Retail Podium Quayside and The One Mall are the Khalandale West Community Mall latest additions to the Retail Estate TL Sky Mall West Community Mall market having begun operations in Q4. 2020 RETAIL SUPPLY FIGURE 1: 2020 QUARTERLY NEW RETAIL SUPPLY (NLA) The 2020 end year modern retail stock is 349,348 sq. m in Phnom Penh with no retail projects delivered in Q2. By the end of Q4 2020, retail estate deliveries contributed 40,740 sq. m, less than half of the retail supply volume compared to 2019. This was initially expected with the prevalence of COVID-19, resulting to the delay of the construction of numerous retail estate developments. Source: Grow Retail Asia (2020) Michael Vong Gary Lam Managing Director Director, Business Development +855 313 799 799 +855 98 856 611 [email protected] [email protected] RETAIL PULSE ISSUE 1 PHNOM PENH 2020 END YEAR RETAIL ESTATE MARKET OVERVIEW 2020 SUPPLY BY RETAIL FORMAT Much of Phnom Penh’s existing retail FIGURE 2: 2020 RETAIL SUPPLY (NLA) BY RETAIL FORMAT supply derives from Shopping Malls, supplying 139,000 sqm. A further 14% Shopping Malls 139,000 sq. m 81,000 sqm of retail supply had been delivered in Shopping Centers. The Shopping Centers 81,000 sq. m remaining 129,348 sqm of Phnom 40% Community Malls Penh’s end year retail supply was 23% 81,182 sq. m primarily composed of Community 23% Retail Podiums Mall and Retail Podium stock, with 48,166 sq. m 81,182 sqm and 48,166 sqm contributed respectively. Source: Grow Retail Asia (2020) A GROW RETAIL ASIA RESEARCH PUBLICATION THE OUTLOOK Grow Retail Asia is a boutique Retail Asset and Development Management Consultancy located in The prevalence of COVID-19 has resulted in a Phnom Penh. sluggish growth in both retail supply and retail activity in 2020 . We expect trading conditions We are passionate about providing bespoke business for some retail sub-groups to remain slightly solutions, specific to your projects, giving challenging moving forward in 2021, however, individualized service, Listening and actually asking what you need, and then working with you to Food & Beverage, takeaway food services , address those needs. grocery and fashion are likely to experience positive growth. Regardless, general sentiment Each of us as individuals, has extensive experience in remains the same as pre-COVID-19 with the Retail Development and Management, and on Asset most desirable assets being grocery-anchored Development, in particular large Urban Townships, retail centers. Mixed Development projects, and Boreys. Michael Vong Gary Lam Managing Director Director, Business Development +855 313 799 799 +855 98 856 611 [email protected] [email protected]