Cambodia’s retail is full of vitality! As the layout of 711, BIG C and other big brands in Phnom Penh

What is your impression of Cambodia?

With old buildings? roads in disrepair? dirty traditional markets or the small capital?

Stop！

Stop stereotyping this country. There are also majestic buildings, luxurious hotels, and high-end shopping malls in Cambodia, and there are a large number of foreign-funded enterprises and investors in major development cities such as Phnom Penh, Sihanoukville, and Siem Reap.

Under the background of the covid 19, regional conflicts and the global economic downturn, some investors did leave the Cambodian market before 2022, but since 2022, a lot of investors have continued to come to Cambodia.

According to data from The Council for the Development of Cambodia (CDC), Cambodia attracted a 7.7% increase in foreign direct investment in 2022. In the first half of 2023, Cambodia approved 113 new investment projects (an increase of 30% compared to last year).

These data show that Cambodia has fully recovered from the covid 19. The government expects the economic growth rate to reach 5.6% this year and set the economic growth target at 6.6% next year. Among them, Cambodia's commercial market is developing rapidly, especially the retail industry.

Recently, CBRE released a market survey for the first half of 2023. The data shows that the occupancy rate of Cambodia’s retail industry has dropped slightly by about 68%, but the street retail market has increased by 95%. At the same time, there are about 83,000sqm of projects (Community Mall, Retail Podium) scheduled to be completed by the end of this year.

This data shows that in the first half of the year when the market was relatively calm, Cambodia's commercial market is still full of vitality, and the retail industry demand remains strong.

At the same time, in the first half of this year, the Cambodian commercial market has also received good news such as new malls, shopping centers, and well-known brands entering and expanding rapidly.

▍Phnom Penh Riverside Commercial Area Expanding

Phnom Penh is formed by the confluence of the Mekong River, the Tonle Sap River and the Bassac River.

As a riverside commercial gathering place, the street along the Royal Palace south of the “Chaktomuk River” has become the most prosperous and lively area in Phnom Penh due to the influence of landmarks + tourism + night market + clubs & bars+ events and other factors.

Moving south from the Royal Palace in Phnom Penh, you’ll see the core area of Chaktomuk River. The commercial center here is composed of Koh Pich Satellite City, AEON 1, Naga, and Golden Street the Chinatown, gathering a large number of top urban resources.

The street along the Royal Palace in is close to the Koh Pich area, which greatly increases the coverage of riverside businesses. According to the several recent actions, Phnom Penh's riverside business will also usher in a substantial expansion.

● Koh Norea Parkway，a part of Koh Norea Satellite City, developed by OCIC (Overseas Cambodian Investment Corporation), it has a total length of 4km and covers more than 20 different scales of retail stores.

At present, construction the retail store and landscape project in Koh Norea Parkway has been completed, and the cross-river bridge connecting Koh Pich Satellite City and Noreah Island Satellite City is expected to be completed in November this year. By then, the two satellite cities will be more closely connected.

● EDC Juta Shopping Mall Project, the first underground shopping mall project in Phnom Penh, and located close to the Night Market in Sangkat Wat Phnom, Khan Daun Penh. This project is invested by EDC Juta (Cambodia) company, and spanning an expansive area of 33,120 square meters.

The project covers a multi-level car park (a capacity to accommodate 516 cars), a contemporary shopping mall, a luxurious resort, and an array of underground services. It has officially started the construction in July 2023.

● Sokha Plaza, located in Daun Penh district, near the Royal Palace and National Museum. The project is designed to have 44 shops with a total area of about 2,000sqm, and more than 300 parking spaces for cars and motorcycles. It is expected to open in 2023.

● Weekend walking tourist area, according to Cambodian media reports in early July, HE.Khuong Sreng, the Governor of Phnom Penh stated that the government is considering to establish a “weekend walking tourist area” from the Ministry of Posts and Telecommunications - the Hotel Cambodiana, which will allow people to travel and shopping by the river.

Have you noticed that? From Ministry of Posts and Telecommunications - Phnom Penh Night Market (EDC Juta shopping mall) - Phnom Penh Royal Palace - the Hotel Cambodiana – Koh Pich (AEON 1, Naga, Golden Street the Chinatown) - Koh Norea, a new riverside commercial area will be formed soon, and the retail business along this line will be greatly developed.

▍Well-known chain retailers will expand the Cambodian market

● 7-Eleven, according to Thai media reports, since the world’s largest convenience store 7-Eleven announced its official entry into Cambodia in August 2021, it has opened 60 branches in Cambodia by June 2023 and plans to achieve the target of opening 100 branches by the end of 2023.

● Big C, on 22 April 2023, OCIC and Thai hypermarket chain BIG C have entered into a Strategic Partnership Agreement to develop the chain’s first hypermarket at the Chroy Changvar Satellite City. Big C is one of the largest supermarket retailers in Southeast Asia. It has entered the Cambodian market since 2019.

 Its first hypermarket in Cambodia is located in Poipet, Banteay Meanchey Province, with an area of 8,000 square meters.

Through self-construction and acquisition, 20 "BIG C MINI" convenience stores have been operated in Phnom Penh and Kampot provinces. It is reported that Big C plans to open 350 stores across Cambodia by 2026.

● DRF-Mart, In June 2023, The Council for the Development of Cambodia (CDC) approved the investment project of DRF-MART FA DAO JIA TRADING Co., Ltd. (DRT-Mart) to build a large supermarket in Sihanoukville.

DRF-Mart is located in Commune No.4 of Sihanoukville, only 200 meters away from the Golden Lions Roundabout, with a total investment of 14 million US dollars.

With the large-scale expansion of many well-known chain retailers, the competition in Cambodia's retail business market will become more intense, and it will also lead the market to develop rapidly.

▍Phnom Penh may become a "city of shopping"

As the capital of Cambodia, Phnom Penh has the most prosperous retail business market. In addition to the riverside commercial area mentioned above, there are also shopping malls, convenience stores, local markets, etc. in other areas. making daily life here more convenient.

There are many chain supermarkets/convenience store brands in Phnom Penh, such as AEON MaxValu Express, Lucky, 7-Eleven, ChipMong, Prince Supermarket, SuperDuper, BIG C, Circle K, Thai Huot Market, Kim Mart, etc., from Thailand, Japan, South Korea, the United States, China, and covering all scale of hypermarkets, supermarkets, and convenience stores.

In terms of comprehensive shopping malls, there are currently several well-known shopping malls in Phnom Penh:

AEON MALL

Everyone should be very familiar with AEON. There are already 3 AEON malls in Phnom Penh. AEON 1 (the first modern mall in Phnom Penh that has reached world-class standards) opened in Chamkarmon district in 2014, AEON 2 opened in Sen Sok District in 2018, and AEON 3 is located on Hun Sen Blvd, Mean Chey District and had a soft opening at the end of 2022.

CHIP MONG MALL

As a Cambodian local brand, Chip Mong has many shopping centers in Phnom Penh, such as Chip Mong Noro Mall in BKK, Chip Mong Sen Sok Mall in Sen Sok District, Chip Mong 271 Mega Mall in Mean Chey District, Chip Mong 598 Mall in Russey Keo District, and Chip Mong Bak Touk next to Olympia.

In addition, it will build a “Chip Mong Pochentong mall” near the airport and a “Chip Mong 50m mall” next to project Land Park 50M.

Among them, Chip Mong Sen Sok, Chip Mong 271, and Chip Mong Noro are all large-scale shopping malls, and the remaining projects that have been opened is more in line with community commercial standards, providing convenience for the brand's Borey community and surrounding residents.

It should be mentioned that Chip Mong Tower will also set up a retail platform.

Makro

Makro is the largest warehouse-type wholesale supermarket in Phnom Penh. Currently it has two branches in Phnom Penh, which located in Sen Sok District and Chroy Changvar District.

There are different type of product selling here, such as daily necessities, kitchen utensils and home appliances. It is one of the wholesale supermarkets with the most complete range of products in Phnom Penh.

Vattanac Capital

Vattanac Capital is a luxury landmark in Phnom Penh and the first business center in Cambodia, located next to the Canadia Tower on Monivong boulevard. Its high-end retail malls have attracted many well-known international brands, such as Hugo Boss, Jimmy Choo, etc. and there is also a high-end sky bar (Sora skybar) on the top of the buliding.

Eden Garden

Eden Garden is located in PPCC of Daun Penh District. It is a garden-theme outdoor retail center and a also a representative of open commercial in Phnom Penh, providing consumers with food, leisure and entertainment.

Next to Eden Garden, there are VIEW PARK MALL and Khalandale Mall. The gathering of these three open commercial centers continues to expand the commercial of the PPCC area.

In addition to the traditional shopping malls, Phnom Penh has a variety of retail business development models, and open commercial are becoming more and more popular in Phnom Penh, such as Koh Pich, Golden Street the Chinatown, Prince Times Square, etc. 

Moreover, community businesses in Borey communities all over Phnom Penh have also developed rapidly in order to facilitate the life and daily shopping of surrounding residents. In addition to the above-mentioned Chip Mong community businesses, there are also K Mall, TL VILLE Mall, and City Mall, Midtown Community Mall, etc.

Cambodia’s retail sector in 2023 will continue to evolve in competition as it adapts to the changing of consumers and markets！