What: SM Supermalls is expanding its experience-led mall model, from pickleball courts to the country's first LED cinema, guided by a dedicated Gen Z Council.

Why it is important: The model mirrors the experience-led repositioning seen at Simon Property Group and in Bangkok, positioning Southeast Asia's largest mall operators as test beds for community-led retail.

SM Supermalls, the Philippines' largest mall chain, recently opened its 90th mall in Zamboanga. President Steven Tan reported P41.8 billion in revenue for the first half of 2026, framing the result as evidence that new initiatives are drawing more visitors at a time when traditional malls are closing in the US and other markets.

The group positions its malls as places to celebrate, stay active and be entertained, catering to "tribes" such as fandoms, active lifestyles and pet owners. Its network counts 102 pickleball courts, it co-hosted the inaugural Galaxy Manila Marathon in June, and it opened the Muse del Galeon at Mall of Asia in April. Entertainment investment includes IMAX expansion and the country's first LED cinema at SM Nuvali, a flagship built around an indoor park atrium. Major malls such as Megamall are being renovated.

On sustainability, 69 malls run on solar energy, and by year end the group expects 300 EV charging stations and over 1.5M plastic bottles collected.

To keep pace with trends, SM relies on a Gen Z Council of randomly selected young people, whose input led to the "Gala to the Max" campaign and theme song performed by P-pop group DNA.

IADS Notes: SM Supermalls' generational and experience-led positioning extends a strategy visible in its recent results. First-half sales rose 8% with occupancy at a record 96%, as the group shifted its tenant mix toward pickleball courts, running hubs, food halls and eat-and-play concepts that encourage repeat visits (Inside Retail, September 2026). At parent level, SM Prime drew 12% of its first-half revenue from cinemas, bowling and ice-skating, a segment growing faster than 10%, while 80% of SM Retail's new stores opened outside Greater Manila (Inside Retail, August 2026). The entertainment push had already been framed as a deliberate move to turn malls into community hubs that extend dwell time and counter e-commerce (Inside Retail, May 2026). The Gen Z Council echoes a pattern seen in the United States, where Simon Property Group's traffic and sales per square foot rose on demand from younger shoppers and youth-focused brands (Fashion Network, May 2026). Closer to the Philippines, Bangkok operators including Central Pattana and The Mall Group are repositioning malls as mixed-use social, food, wellness and cultural destinations, confirming that Southeast Asian mall growth now rests on community programming rather than retail floorspace alone (Monocle, July 2026).

SM Supermalls taps a Gen Z Council to keep Philippine malls relevant