Gaisano group puts up mall in Pagadian

BY DARWIN T. WEE, BusinessWorld Correspondent ZAMBOANGA CITY — The Gaisano Group, southern Philippines’ dominant retail chain, is building its first major shopping mall complex in Zamboanga Peninsula in Pagadian City. The construction of the mall, now on full swing, is expected to boost economic activities in the region. In a telephone interview, Maria Socorro M. Atay, Department of Trade and Industry Zamboanga del Sur chief, said the more than P100-million Gaisano Mall-Pagadian is the newest among the company’s chain of shopping complexes in Mindanao. Representatives of the Gaisano group could not be reached for comment. The mall is being built on a one-hectare property along Pagadian’s Rizal Ave., which is located at the city’s central business district. The four-storey mall, which started construction in the last quarter of 2007, is expected to be fully operational in the middle of this year. Perks Ms. Atay said the Pagadian City Investment and Incentive Board approved the construction of the mall in the second quarter of 2007. "Actually, the Gaisanos bought the land 10 years ago and our mayor (Samuel S. Co) convinced them to set up the mall by guaranteeing them perks," Ms. Atay said. Perks include exemption from local tax of four years, three years in real estate tax, and mayor’s permit. In a statement, Mayor Co said that the entry of Gaisano "will boost Pagadian’s economy and will generate revenue and employment." Aside from Gaisano, Best Emporium, a retailer from Zamboanga City, is also setting up a shopping mall in Pagadian City. Best Emporium’s mall, Ms. Atay said, would be of the same size as Gaisano’s. Pagadian City sits at the northeastern side of Zamboanga Peninsula and is a point of entry to the cities of Ozamis, Iligan and Cotabato. The city is poised to become the regional center of Zamboanga Peninsula based on Memorandum circular no. 75 signed by Executive Secretary Eduardo R. Ermita. Growing retail presence Ms. Atay said several food chains have also started to put up their businesses in the Pagadian, including fastfood giant Jollibee Foods Corp. Lowell S. Vallecer, information officer of the Trade and Industry regional office said Zamboanga del Sur has generated more than P1.5 billion in domestic investment in 2007. The entry of Gaisano in Pagadian City could edge out Zamboanga City in terms of luring investors. But Sheila E. Covarrubias, City Hall information officer, said that in October last year, a Gaisano executive also expressed intention to invest in Zamboanga citing the numerous potentials of the city. A member of the Zamboanga City chamber of commerce confirmed to BusinessWorld that the Gaisanos are already scouting for areas, particularly on the western coast of the city. James Cesar L. Makasiar, newly elected president of the Zamboanga Chamber of Commerce and Industry downplayed earlier reports that local retailers are lobbying against the entry of big shopping mall developers. "I don’t think [that’s true] and there is no barrier in setting up businesses here," he told BusinessWorld. "If you will see it in a different perspective, I think there are a lot of factors why these giant mall developers have not yet successfully set up its businesses here. One is that there are already too many retail stores here."