Physical retail remains the preferred channel for consumers despite the rise of digital platforms, SM Supermalls President Steven Tan said during the National Retail Federation (NRF) Big Show Asia Pacific 2026.
Speaking before international retailers, Tan shared strategies for adapting to shifting consumer behavior, the growth of digital-native shoppers and economic pressures, including the fuel crisis.
"At SM Supermalls, we’ve learned that downturns don’t change the direction of demand. Even in challenging times, people still go out — they simply become more intentional about where they spend their time and money," he said.
Tan highlighted SM Supermalls' expansion plans following its 40th anniversary in 2025, including a roadmap to open one flagship mall annually from 2026 to 2030. The company operates 90 malls in the Philippines and nine in China.
He said the company's growth strategy was shaped by decades of navigating economic and political disruptions.
"SM continues to invest when others pull back. We see uncertain periods as opportunities to build, redevelop, and create better experiences for the long term. Over time, experience taught us that challenges are temporary. Across decades, SM has weathered multiple disruptions—from the 1986 People Power movement, the 1997 Asian financial crisis, the 2007 housing slowdown, and the 2020 pandemic—but recovery has always followed."
Tan said the company's approach stems from its responsibility to customers, communities and other stakeholders.
Reflecting on his early tenure as president during the COVID-19 pandemic, Tan said the crisis reinforced the importance of values-based leadership.
"The pandemic reinforced a core belief: leadership must be values-driven. With no clear playbook, decisions were guided by care, responsibility, and doing what was right—not what was easiest. Because of this, we choose to see opportunity in difficult moments. Periods of uncertainty often become windows for expansion, redevelopment, and long-term investment."
Addressing the continued growth of e-commerce and the expectations of younger consumers, Tan said retailers must focus on creating experiences that cannot be replicated online.
"People no longer visit malls just to shop — they come for dining, entertainment, services, community, and experiences they cannot get online," said Tan. "That’s why SM invests at scale. We are building future-ready malls and communities designed around the long-term shift toward experiential retail, connection, and everyday life."
He cited projections showing the experiential retail market growing from $132 billion to $540 billion by 2035 and urged retailers to stay focused on customer needs.
"Think like a customer, not a mall. Because customers return to what they love — and our job in retail is to make it worth loving. When we do that, every decision becomes clearer. We improve the experience, remove friction, and focus on what truly brings people back."
The NRF Big Show Asia Pacific brings together more than 11,000 retail professionals to discuss trends and opportunities in fast-growing markets.
