SM Supermalls Revenue Rises 8% to $667M on Record Occupancy

SM Supermalls lifted first-half revenue by 8 per cent to US$667 million across the Philippines as mall occupancy reached a record 96 per cent.

Same-store sales rose 4.8 per cent to 41.8 billion Philippine pesos during the six-month period, driven by steady foot traffic and resilient food spending.

Vacant floor space dropped to 4 per cent across the network, with the operator attributing most empty units to planned tenant relocations rather than lease cancellations. President Stephen Tan said shoppers have grown more deliberate about where they spend, favouring better quality and experiential formats over basic discount hunting.

Casual dining led tenant performance, according to executive vice president for marketing Joaquin San Agustin, who noted that trading held steady across nearly all retail categories.

Shifting space from apparel to leisure

To keep mall floors full, the group is reallocating square footage away from traditional apparel racks toward sports, entertainment and social concepts. Recent additions include pickleball courts, running hubs, food halls, game parks and combined dining-and-gaming venues.

“A mall can’t stay the same,” Tan said. “You have to keep introducing new tenants and new experiences to keep customers coming back.”

Across Southeast Asia, mall operators face a split market. While department stores in older suburban centres lose ground to online shopping, dominant prime developers in the Philippines, Indonesia and Thailand are converting excess retail capacity into recreational destinations to protect dwell times and rental yields.

Provincial expansion pipeline

Growth is now concentrated outside the capital. The company opens SM Nuvali in Laguna this November, installing the country’s first direct-view LED cinema screen to replace traditional projection booths.

Further openings scheduled in the pipeline include new regional developments in Tagum, General Trias, Bohol and Malolos.