More foreign retailers seen entering Philippine malls

MANILA, Philippines — More foreign retailers are projected to enter physical malls next year, mainly enticed by the country’s consumption-driven economy, according to a professional services and investment management company.

“We expect a more aggressive entry of foreign retailers in physical malls,” Colliers Philippines said in its 2025 Philippine Property Market Outlook Report.

“Developers will continue to renovate their existing spaces and introduce immersive concepts to attract greater foot traffic,” it added.

Colliers emphasized that the country is now seeing the impact of the Retail Trade Liberalization Law on physical mall space absorption.

“The Philippine economy is primarily consumption-driven, and this entices foreign retailers to invest in the country. Foreign players are now more aggressive in taking up physical mall space,” Colliers said.

In addition, the professional services firm projects the expansion of foreign retailers, especially those in the home furnishing segment.

“We believe that the eventual take-up of the sizable number of ready-for-occupancy units in Metro Manila will likely support the demand for furniture and home accessories,” Colliers said.

In its Q3 Metro Manila Residential Report, Colliers noted that the Metro Manila residential market has a substantial amount of unsold ready-for-occupancy units, totaling around 27,000 units and valued at P154.4 billion.

Meanwhile, with the rising interest in the Philippine retail landscape, Colliers expects the entry of more anchor tenants, particularly in major regional and super-regional malls across the capital region.

Colliers noted that major developers have also been redeveloping their existing retail spaces.

An example of these efforts is Ayala Land’s allocation of P13 billion to renovate Glorietta and Greenbelt 2 in Makati CBD, Trinoma in Quezon City and Ayala Center in Cebu. Other malls that are being renovated include SM Megamall, SM East Ortigas and Robinsons Forum.

It added that mall operators are banking on high-density retail to maximize consumers’ willingness to visit brick-and-mortar mall spaces, noting that malls are likely to integrate more immersive or experiential spaces.

“There will be a focus on experiential retail and unique products and services. Even luxury is facing ‘fatigue’ at the moment, and brands that will do well are those that offer a unique curation and product offering,” Colliers said.

“This segment is making a comeback after being heavily disrupted by the pandemic due to physical distancing,” Colliers said.

An example of these experiential offerings is Fantasy World, the Philippines’ largest indoor amusement park, which recently opened in a 3,000-square-meter space in SM Fairview.

Other experiential retail brands that recently opened include Space & Time Cube+ in S Maison and Science XPidition in Ayala Malls Manila Bay.

Moreover, mall operators are also implementing a shift to suburbia, even in the retail sector, resulting in more retail centers outside of the capital region.

Among the malls undergoing redevelopment and are scheduled to open outside Metro Manila are Filinvest Mimosa Mall in Pampanga, Power Plant Malls in Bacolod and Pampanga by Rockwell Land, Megaworld’s The Upper East Mall in Bacolod, the Ayala Malls Abreeza expansion, and the redevelopment of Ayala Center Cebu and Robinsons Bacolod.