International cash and carry brand Makro will build a commercial centre in Siem Reap, following the approval of the investment by the Council for the Development of Cambodia.
For in depth analysis of Cambodian Business, visit Capital Cambodia
The mall, located in Prasat Bakong district, will cost nearly $19 million and will create 179 jobs for locals, according to CDC.
James Hodge, associate director of CBRE Cambodia, told Khmer Times yesterday that Siem Reap is growing rapidly as a market and attracting larger amounts of tourists, making investments like Makro’s necessary to keep up with customer demand.
He said Makro’s presence will surely affect existing businesses.
“Businesses may respond by considering prices, the quality of the service or environment they offer to customers.
“Usually competition is a good thing for consumers as it ensures businesses remain up-to-date and listen to customers in order to remain relevant,” he added.
Mr Hodge said the modernisation of the retail market is now happening across the entire country, not just the capital. “Provincial towns and cities will follow in Phnom Penh’s footsteps, developing modern format retail to suit demand.”
“Certainly a provincial town or city that benefits from high numbers of tourists will also interest retail developers. They see an opportunity to tap into another source of potential customers,” he said.
Makro opened its first supermarket in December 2017 in Phnom Penh. It was a joint venture of Siam Makro, which operates more than 100 Makro stores in Thailand, and Cambodia’s LYP Group Company Limited, run by tycoon and senator Ly Yong Phat.