SM Supermalls is reworking its mall strategy as inflation and economic uncertainty make Filipino consumers more deliberate about where they spend both their money and their time.
“Because of these pressures, value drives the Filipino consumer now more than ever,” SM Supermalls President Steven Tan said during the company’s Midyear Business Review. “They are becoming more deliberate in how they spend their time and money.”
That shift is pushing SM beyond the traditional mall formula of shops, food, and a cinema. The company is adding more spaces for experiences, wellness, recreation, and socializing, betting that consumers will still spend when a trip to the mall offers more than a transaction.
SM is expanding food halls, pickleball courts, cinemas, co-working spaces, wellness areas, and dining and entertainment concepts to respond to changing consumer priorities.
The expansion is also being tailored to local demand. SM City Iloilo is adding 46,000 square meters, while a two-story expansion at SM City Naga is aimed at the region’s growing youth market. SM City Sto. Tomas will increase its gross leasable area by 30 percent following strong tenant demand.
At SM Aura, the grand staircase will be converted into a library, while its Sky Park will be enhanced as an urban community space.
SM is also testing new formats. Game Park, Funventures, and an Eat and Play flagship have been introduced at SM City North Edsa, which also houses the country’s first cinema LED screen, offering brighter and sharper images than conventional projectors.
“These upgrades will help us serve growing communities and make every visit even better,” Tan said.
The strategy extends beyond foot traffic. SM is pairing mall expansion with renewable energy, resilient design, and recycling initiatives. Its reverse-vending network is expected to collect more than 1.5 million plastic bottles by year-end.
Meanwhile, monthly trade fairs have supported about 800 small businesses and nearly 3,000 entrepreneurs, while nationwide job fairs provide employment and upskilling opportunities.
For SM, the mall is increasingly becoming less about selling space and more about creating reasons for consumers to show up, stay longer, and return.
