Insider Spotlight
SM Prime Holdings, Ayala Land, Megaworld Corp. and Robinsons Land have lined up 46 mall projects through 2030, with 26 involving redevelopments, 17 new shopping centers and three expansions, according to property consultancy Colliers Philippines.
Consumers tighten their belts
The massive investment comes as households prioritize essentials such as food, education and healthcare while cutting back on restaurants, hotels, transportation and leisure activities amid pressure on their budgets.
“Filipinos continue to spend on the basics — food and beverage, education, health,” Joey Bondoc, director for research at Colliers Philippines, said during their quarterly industry update on Tuesday.
Pickleball takes over the malls
Mall operators are responding by turning underused cinemas, parking lots and rooftops into sports and entertainment destinations, with SM alone operating 108 pickleball courts across 33 malls nationwide.
Ayala Malls The 30th has converted a former cinema into pickleball courts, Bluewave Mall has transformed cinema space into a sports deck, and SM Supermalls is repurposing parking areas and rooftops for the increasingly popular sport.
Bigger stores, smaller indulgences
The changes extend to retail stores, with National Book Store shifting toward fewer but larger outlets while global brands such as Foot Locker and Uniqlo operate their biggest Southeast Asian stores at Glorietta.
The food business presents another twist: Filipinos are spending less on restaurants, yet food and beverage operators account for nearly 50 percent of retailers planning to open new physical stores.
“Maybe it's because of the Middle East conflict, declining remittances, elevated inflation, elevated fuel prices. Filipinos are skimping on restaurant and hotel spending, transportation, recreation, cultural trips,” Bondoc said.
Coffee, tea and chocolates lead the way
Newcomers such as Vietnam’s Lunch Lady, South Korea’s Super Matcha, Thailand’s ChaTraMue and China’s Cotti Coffee are betting on Filipino appetites for new dining concepts, coffee and specialty drinks, alongside European chocolate and pastry brands.
Despite pressure on household budgets, mall foot traffic continues to increase, with Colliers projecting Metro Manila retail vacancy will decline to around 8.5 percent by the first half of 2027.
—Edited by Miguel R. Camus
