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More than half of Taiwan retailers plans to expand in 2021

Taiwan

Approximately 60 percent of Taiwan retailers expect to expand their operations in the coming year, after more than 50 percent abandoned expansion plans on sinking revenues at the height of the pandemic in April last year, according to a recent report issued by CBRE Taiwan.

SEE ALSO : Japan’s 2nd Street expands in Taiwan with second store

In CBRE Taiwan’s latest report, 63 percent of Taiwan retail respondents expect retail sales to improve in 2021, after a slight increase in 2020, which saw the Covid-19 pandemic hit and revenues drop in the first quarter of 2020.

Of those surveyed — including restaurants, supermarkets, entertainment facilities, as well as cosmetics and fashion stores –many Taiwan retailers are actively searching for expansion sites, thanks to positive rental prices and the nation’s healthy economic
outlook.

While more than half expect to expand their retail scale physically in 2021, some 44 percent said they plan to expand digitally, looking to online sales.

By category, 77 percent of local eateries said they plan to improve food delivery offers, on the back of an increase in credit-card spending for food delivery services.

However, 30 percent of Taiwanese stores said they would put off expansion plans — lower than 39 percent elsewhere.

When looking at the APAC region as a whole, Taiwan’s investment interest is much healthier than the regional average at 49 percent, added CBRE.

SEE ALSO : Carrefour closes Wellcome Taiwan acquisition

The news comes after Taiwanese retail sales inched forward 0.2 percent in 2020, according to CBRE Taiwan, thanks to the swift response to the Covid-19 pandemic, resulting in a turnaround in sales in the second quarter.

Online retail sales last year totaled US$12.2 billion, surging 19 percent from a year earlier, said CBRE.

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