SM Supermalls remains committed to its five-year expansion plan and goal of operating 100 malls by 2030, even as construction delays, higher operating costs, and cautious consumer spending test the retail-property sector.
SM Supermalls President Steven Tan said the company expects to end 2026 with 91 malls following the planned opening of SM Nuvali by November. While some projects have been delayed by several months due to construction and logistics problems, SM is keeping its broader expansion timetable intact.
“We are still focused on fulfilling our commitments to the public,” Tan said.
The pipeline includes malls in General Trias, Bohol, and Malolos, along with the redevelopment of Harrison Plaza.
SM has weathered softer business conditions partly by encouraging consumers to accomplish more of their shopping, dining, and leisure activities under one roof. Tan said average dwell time has risen to about three to three-and-a-half hours from roughly two hours previously, as higher fuel prices make trips between multiple destinations less appealing.
“They consume everything in an SM mall. They do everything,” Tan said, adding that the company’s “We’ve got it all for you” proposition has become increasingly relevant.
Occupancy has climbed to 96 percent from 94 percent last year and 92 percent previously, while foot traffic has also increased by a few percentage points. Restaurants now account for about 30 percent of SM’s tenant mix, a sharp change from less than five percent in 2004.
The longer visits come as retailers prepare for the crucial Christmas season. Tan acknowledged that rising electricity costs and logistics disruptions continue to push up operating expenses, but said SM remains optimistic about year-end spending.
With festive decorations, music, and activities already part of the holiday playbook, SM is preparing for shoppers to linger longer, turning the traditional Christmas mall visit into an increasingly all-day affair.
