Metro Manila fast running out of mall space

MANILA, Philippines – One of the country’s largest mall developers believes Metro Manila is nearing its saturation point in terms of shopping centers, causing less established names to be out of business in a few years’ time.

Robinsons Land Corp. (RLC) commercial centers division general manager Arlene Magtibay told The STAR Metro Manila may be facing saturation levels in mall space in the next three to five years.

“I cannot say that we have already reached a saturation point at present but given that there are many more malls that will be coming up soon, it’s very possible that competition will be stiffer. There will be some that will definitely be affected. The ones that are less differentiated. So there should be better differentiation between the malls, better customer service, better facilities, and more interesting tenant mix,” Magtibay said.

RLC, the property arm of the Gokongwei family, operates 11 malls in Metro Manila to date.

Magtibay said reaching saturation levels would have a positive impact to consumers but it would likewise result in a tougher business climate among retail players.

“It’s good for the consumers because the malls will definitely try to provide better service and stores. Overall it’s going to be good for them. On the other hand, we, the mall developers, have to be very creative to deliver better service to customers,” she said.

With Metro Manila getting too crowded with various shopping centers, Magtibay said RLC is gearing up its expansion towards the provincial areas and the second-tier cities.

Still, she said RLC sales and foot traffic across its 11 malls in Metro Manila remain robust.

But while RLC feels Metro Manila is fast running out of spaces for new malls, the country’s largest shopping center developer, the SM Group of the Sy family, thinks on the contrary.

SM Supermalls president Annie Garcia told The STAR saturation point for Metro Manila is still far from happening.

“I don’t think it will be happening anytime soon. Space is really available and opportunities will never run out. It’s a transactional thing. If the price is right, maybe someone can sell his property and may be someone can turn it into a commercial property,” Garcia said.

SM has 18 out of its 52 malls located in Metro Manila.

Garcia said while the company is looking for expansion opportunities outside Luzon, it still has several sites within Metro Manila.

“When competitors try to outdo each other, it’s very good for the consumers. In fact, consumers stand more to gain by having more options because they don’t have to go too far to reach something. As an industry we remain vibrant and creating more options for consumers,” Garcia said.