Steven Tan steers SM malls’ expansion, innovation era

At the forefront of one of Southeast Asia’s largest retail networks, SM Supermalls president Steven Tan is shaping the future of Filipino shopping and lifestyle spaces. Since taking over as president in January 2020, Tan has been at the helm of a transformative expansion and redevelopment drive, overseeing both iconic flagship projects and emerging mall concepts across the Philippines and Southeast Asia.

Tan’s journey with SM Prime Holdings began in 2004.

With a background in hospitality and retail property management, he steadily climbed the ranks, serving as chief operating officer before assuming leadership of SM Supermalls, the company’s mall-management unit.

His deep understanding of property management, customer experience, and operational efficiency has been pivotal in guiding the company through challenging times, including the pandemic, ensuring continuity of essential services across SM’s malls nationwide.

Five-year campaign

Under Tan’s leadership, SM Supermalls has pursued both growth and innovation. In an exclusive interview with the DAILY TRIBUNE, Tan shared details of a P150-billion investment program that forms the cornerstone of SM’s next five years. The plan targets double-digit annual growth while modernizing and expanding the company’s retail footprint.

“For us, we’re projecting, hopefully, a double-digit growth year-on-year. That is the goal, and that is the direction given to me by SM Prime,” Tan said.

The investment blueprint includes launching one flagship mall each year from 2026 to 2030, constructing 12 new lifestyle malls, and redeveloping 16 existing properties. According to Tan, the company’s largest malls, including Megamall, North EDSA, Pampanga and Clark, will receive the bulk of these upgrades.

“These would get the lion’s share: the big ones — Clark, Pampanga, Lanang, Fairview, Megamall and North EDSA,” he noted.

The redevelopments will feature open-air promenades, lifestyle zones, and green design elements, reflecting SM Supermalls’ commitment to sustainability and its pledge to achieve net-zero emissions by 2040. Tan emphasized that these enhancements are not just aesthetic upgrades; they aim to improve the overall customer experience, increase foot traffic, and boost the value of SM’s properties.

Reviving iconic Harrison Plaza

Among the landmark projects lined up is the revival of Harrison Plaza in Malate, Manila. Opened in 1976, Harrison Plaza was one of the country’s earliest modern shopping centers, long remembered for its cinemas, retail stalls, and lively tiangge culture.

The mall formally closed in 2019, and the site has since been earmarked for redevelopment into SM Harrison Plaza, a mixed-use flagship mall slated to open in 2027. Tan described the project as part of a broader shift toward greener, people-centric developments, with the company modernizing its portfolio to include lifestyle and sustainable features.

“We are modernizing our portfolio with open-air promenades, lifestyle zones and sustainable features,” he said.

Another major redevelopment is SM Megamall, which will adopt the “Crystal Islands” concept designed by UK-based architectural firm Benoy, known for Singapore’s Jewel Changi and Thailand’s Icon Siam.

The P7-billion project, scheduled for phased completion between 2027 and 2029, will add 20,000 square meters of gross leasable area, state-of-the-art cinemas, a four-level basement parking facility, redesigned food courts, upgraded tenant spaces and sustainability initiatives including rainwater harvesting and sensor-activated escalators.

Tan emphasized that SM Megamall remains the company’s highest-performing mall in terms of sales per square meter. The redevelopment is expected to enhance its revenue potential further while accommodating new retailers.

“We always work with our partners when it comes to our rental or leasing of our space. We also always study the sales over rent of the tenants. If the threshold still allows us to increase the rent, we normally do that annually, but of course, working with our tenant partners is key here,” he said.

SM’s expansion is not limited to retail spaces. Tan revealed that the company is also investing in arenas and convention centers, including a new arena and convention center in Cebu.

“An arena might not give you the same return as the shopping center, but it enhances the whole experience. Everyone benefits from it because of the foot traffic it can generate. And also, the value of the property goes up,” he explained, reflecting on SM Supermalls’ strategy of evolving into integrated lifestyle destinations, combining retail, leisure, and business facilities under one roof.

Legacy, growth and community impact

Since opening SM North EDSA in 1985, SM Supermalls has grown to 88 malls nationwide, welcoming millions of visitors weekly and hosting thousands of local and international brands. Under Tan’s leadership, the company has continued to strike a balance between heritage and innovation, preserving the legacy of iconic malls while modernizing properties for the next generation of shoppers.

Tan’s vision goes beyond the malls themselves. By integrating lifestyle, sustainability, and mixed-use elements, he aims to create destinations that elevate communities, stimulate local economies, and set a new standard for urban retail development in the Philippines.

The success of SM’s expansion will depend on factors such as consumer spending recovery, regional economic growth, and the company’s ability to blend digital and physical retail experiences.

As SM Supermalls celebrates its 40th anniversary, Tan’s leadership underscores a clear trajectory: growth through innovation, sustainability, and experience-driven development. From Megamall to Harrison Plaza, his stewardship is guiding the company into a decade of bold expansion that will shape the Philippine retail landscape well into the 2030s.