Market profile
A large, English-speaking, mall-centred market where remittances, family shopping trips and social commerce shape demand.
- Capital
- Manila
- Population
- around 115 million
- Currency
- Philippine peso (PHP)
- Leading channel
- Malls and modern trade (49%)
- Cash on delivery
- 34% of online orders
- Lead region
- Metro Manila (45%)
Retail value by channel
- Malls and modern trade 49%
- Sari-sari and traditional 32%
- E-commerce 14%
- Other 5%
- Metro Manila
- Cebu
- Davao
- Iloilo
- Cagayan de Oro
Property is the biggest fixed commitment a retailer makes, and it is the hardest one to reverse. In Philippines, a handful of large mall groups own the strongest catchments nationwide.
Rent is often tied to a percentage of sales in mall leases, and three to five years within mall groups, with portfolio-level negotiation is the normal term.
The landlord landscape
A handful of large mall groups own the strongest catchments nationwide. Rent is often tied to a percentage of sales in mall leases.
Lease structure
Turnover rent clauses cut both ways: they lower risk in a weak year and hand the landlord visibility of your trading in every year. Negotiate the reporting obligation as carefully as the percentage.
| Term | Typical Philippines position |
|---|---|
| Length | Three to five years within mall groups, with portfolio-level negotiation |
| Rent basis | Rent is often tied to a percentage of sales in mall leases |
| Deposit | Two to three months, sometimes more for new entrants |
| Fit-out | Rent-free fit-out period is negotiable, especially in secondary centres |
“Turnover rent clauses cut both ways: they lower risk in a weak year and hand the landlord visibility of your trading in every year.”
Choosing a location
Demand concentration matters more than city population. Metro Manila carries roughly 45% of modern retail sales, so the first stores belong there unless there is a specific reason otherwise.
- Priority catchments: Metro Manila, Cebu, Davao, Iloilo and Cagayan de Oro
- Test the catchment on a weekday evening and a weekend afternoon before signing
- Check the anchor tenant mix and the vacancy rate on upper floors
- Ask what the landlord's marketing levy actually pays for
- Metro Manila45%
- Rest of Luzon24%
- Visayas18%
- Mindanao13%
Indicative regional split, the first filter in a location plan.
Occupancy cost discipline
Track occupancy cost as a percentage of sales, including service charge and marketing levy, and set an exit threshold before opening. Stores are rarely closed early enough because the decision rule is written after performance disappoints.
Latest Philippines retail news
All coverage →- Coca-Cola Commits P157 Million to Aid 15,000 Philippine Micro-Retailers
Sep 21, 2026
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- Hikiniku to Come Opens Second Manila Store at SM Megamall
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