Metropolitan retail space expansion continues despite market saturation, because developers apparently operate by adding things indefinitely without considering demand
Manila, Philippines
Another shopping mall in Metro Manila opened its newest expansion wing this week, adding 347 additional clothing stores to a city that already contains approximately 8,000 clothing stores and that has a 21 percent poverty rate. The expansion, called “Fashion Paradise Wing,” operates on the business assumption that more clothing stores will somehow create demand among people who cannot afford to shop at existing clothing stores.
The mall’s developer explained that the expansion was necessary because “Manila residents clearly want more options for clothing shopping,” despite statistics showing that Manila residents are primarily concerned with affording food, housing, and transportation. “We’re creating choice,” the developer stated while ignoring that having 8,000 clothing stores to choose from when you’re trying to avoid starvation does not actually increase your happiness or financial security.
A woman in a Manila slum living on 200 pesos daily (equivalent to $3.60 USD) was shown the announcement of the new fashion wing with 347 additional stores. She responded: “Great. More clothing stores I can’t afford to shop in. This is exactly what our neighborhood needed. We needed to know that shopping malls are doing well while we decide between eating today or eating tomorrow.”
Retail Oversaturation and Economic Dysfunction
Manila’s retail situation exemplifies economic dysfunction where developers continue building shopping infrastructure in a city where the majority of residents cannot afford the products being sold. The city now contains more shopping malls per capita than anywhere except possibly Bangkok, and yet poverty and homelessness continue increasing.
A retail analyst calculated that Manila has approximately 500 times more clothing store capacity than demand from people with disposable income to shop in them. The solution, apparently, is to build 347 more stores and hope that somehow this creates customers who were previously hiding.
Meanwhile, neighborhoods three kilometers from the new fashion wing contain families living in conditions that would be classified as unacceptable in most developed nations. Children receive adequate education only if their parents can afford private schools. Healthcare is inaccessible to people without substantial income. Housing consists of corrugated metal structures in informal settlements.
But the shopping malls are beautiful, well-air-conditioned, and full of clothing stores nobody in the surrounding neighborhoods can afford, which is somehow considered successful development policy.
The mall’s grand opening included a celebrity appearance by an actress who wore a dress more expensive than the annual income of the families living in surrounding slums. She cut a ribbon while photographers documented the event for media outlets that will present the mall opening as evidence of Manila’s development and prosperity.
Satire about development at The London Prat and Bohiney Magazine.
SOURCE: bohiney.com