- Nearly 50 brands both local and international open door
- More brands entries are slated to boost potential for retail supply as its occupancy rate remains high
- Retail space supply rose to 400 000 square meters. By 2025, the total cumulative supply of Phnom Penh retail space is forecast to reach around 1 million square meters.
“Despite the on-going pandemic, local and international brands are actively entering the market, trying to grab a piece of the pie”
Both international and local brands have come on stream in the capital city of Phnom Penh, as the country’s economy is gradually getting back on its feet. Nearly 50 brands entered the market from 2021 to early this year, according to real estate’s agency report.
More brand entries could be a good sign for the retail space sector, as the occupancy rate remains high standing at 66 per cent of the total supply, 400,000 sqm as of 2021.
As reported in the study of Phnom Penh Market by Knight Frank and CBRE Cambodia, approximately 50 stores have come on stream from 2021 to early this year. Amongst those brands are widely known fast-fashion brands, H&M and OVS, Pizza Hut, PAPA John’s, and Wilsonart, which the latest provides furniture and office supplies. All these brands will contribute to a more variety of choices and experiences for local people and expats living in the country.
Originally owned by US-based restaurant firm Yum Brands Inc., Pizza Hut is brought into Cambodia by a local-food chain corporation United Food Group (UFG). Thus far, Pizza Hut has already opened 5 stores since it announces its official presence in late 2021. The company is planning to open up to 30 stores in the country within the next two or three years. UFG is also the owner of Cambodia’s leading restaurant Park Café, which is currently operating 20 stores in the country.
The presence of new brands like Pizza Hut will bring benefits to the real estate sector. According to Mr Heng Sengly, CEO of UFG, adding that each Pizza Hut store requires an average of 200 sqm to operate.
“Despite the ongoing pandemic, local and international brands are actively entering the market, trying to grab a piece of the pie,” CBRE Cambodia stated in its Q1 2022 report.
The average quoting rent for retail is ranging from $25 to $30 per sqm per month. Meanwhile, the retail space supply is expected to soar over 1 million square meters by 2025.