What: SM Supermalls' first-half revenue rose 8 per cent to US$667 million, with occupancy hitting a record 96 per cent across its Philippine mall network.

Why it is important: The results show value-seeking rather than trade-down behaviour among consumers, reinforcing that quality and experience — not just price — now drive mall performance and tenant relevance.

SM Supermalls, the Philippine retail giant, reported higher sales and record occupancy in the first half, with president Stephen Tan attributing the results to resilient consumer demand despite cost-of-living pressures. Same-store sales increased 4.8 per cent, while occupancy reached a record 96 per cent, with most remaining vacancies linked to tenant relocations and store adjustments.

Tan said consumers have become more intentional with their spending, seeking value through better quality and experiences rather than the cheapest option. Foot traffic also increased, supported by resilient trading across most retail categories, with casual dining remaining one of the strongest-performing segments. Dining has become central to SM's tenant mix as the group shifts its focus toward experiences that encourage repeat visits, including pickleball courts, running hubs, food halls, game parks and eat-and-play concepts.

SM continues to expand beyond Metro Manila. SM Nuvali in Laguna, opening in November, will feature the Philippines' first LED cinema screen. Further projects are planned in Tagum, General Trias, Bohol and Malolos, as SM keeps its focus firmly on future growth.

IADS Notes: SM Supermalls' record occupancy and same-store sales gains build on a strategy already well documented across the group. Retail revenue growth from SM's mall-adjacent formats was detailed in an Inside Retail piece from August 2026, which showed SM Retail leveraging SM Prime's expanding mall footprint to grow beyond Greater Manila. The entertainment- and experience-led tenant mix now anchoring SM Supermalls echoes what Inside Retail described in May 2026, when SM Prime was reshaping its malls into community and entertainment hubs to extend dwell time and compete with e-commerce. The broader push into secondary cities, including the upcoming Nuvali, Tagum, General Trias, Bohol and Malolos projects, follows the regional growth thesis set out in an Inside Retail report from March 2026, which linked SM's expansion outside Metro Manila to infrastructure gains and untapped consumer demand in emerging Philippine cities.

SM posts higher sales as occupancy hits record 96 per cent