Building malls of the future
Tan said SM’s evolution reflects changing Filipino habits, with consumers increasingly looking for spaces that allow them to pursue hobbies, wellness and social connections.
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Tan said SM’s evolution reflects changing Filipino habits, with consumers increasingly looking for spaces that allow them to pursue hobbies, wellness and social connections.
THE newly opened arena is poised to host major concerts and sporting events in the Visayas, reinforcing SM Supermalls’ vision of malls as destinations for experiences, entertainment and community.
Photos courtesy of SM Supermalls
SM Harrison Park will open by end of 2027.
A pickleball court in SM Sta. Mesa.
SM City Sto. Tomas.
SM Seaside Cebu Arena, a major live entertainment and sports venue located in Cebu City, Philippines.
STEVEN Tan, president of SM Supermalls.
SM Supermalls is accelerating the transformation of its properties nationwide, unveiling new developments and upgrades aimed at redefining the role of malls in Filipino communities.
From arenas and wellness facilities to green spaces and youth-oriented hubs, SM is positioning its malls as lifestyle ecosystems rather than conventional retail destinations.
This shift in consumer behavior is driving SM Supermalls’ next phase of development, according to president Steven Tan, as the company moves beyond traditional retail to create more experience-led destinations.
“Serving you today means going just beyond retail,” Tan said. “So retail is not essential anymore. What we’re serving you right now is completely different.”
One of SM’s biggest moves toward this direction is the expansion of entertainment and lifestyle offerings outside Metro Manila, including the newly opened SM Seaside Cebu Arena, which features 25,000 seats and is positioned to host major concerts and sporting events in the Visayas.
“It will now bring world-class concept, concerts and major sporting events in the Visayas region, boosting tourism and at the same time fueling Cebu’s economy,” Tan said.
He noted that experiences once concentrated in Metro Manila are now being made accessible to other regions.
“Hindi lang tayo sa Metro Manila makaka-experience ng big concerts or a UAAP competition. Sa Cebu you can also experience that,” he said.
Experience-driven malls
Tan said SM’s evolution reflects changing Filipino habits, with consumers increasingly looking for spaces that allow them to pursue hobbies, wellness and social connections.
“People don’t just watch from sidelines anymore,” he said, referring to the growing popularity of activities and events inside malls. “‘Gala to the Max’ showed how an ordinary mall visit can turn into a fun shared moment with family and friends.”
Active lifestyles have also become a key part of SM’s mall planning. The company now has 102 pickleball courts across 32 malls nationwide, while major running events in Cebu and Manila attracted a combined 40,000 participants.
“Active living and wellness are officially part of our daily routines, and our malls are here to evolve with you to serve you,” Tan said.
Community spaces
The transformation is also visible in SM’s approach to food, entertainment and culture. Tan recalled how the company’s restaurant mix has grown significantly over the years as dining became a major reason why people visit malls.
“When I first joined SM back in 2004, our food and restaurant mix, we were only like less than five percent. Right now, our food mix is already up to 30 percent,” he said.
He explained that the rise of e-commerce pushed malls to rethink their purpose.
“With the advent of e-commerce, people are going to be buying their things or their essentials online, so you guys have to prepare for that,” Tan recalled being told by Hans Sy Sr. “And so, how do you prepare for that? It’s evolving with the times.”
Today, he said malls must offer experiences that cannot be replicated online. “People go to the mall right now to celebrate, to dine, to experience,” he said.
Bringing Harrison Plaza back
Part of SM’s vision for the future is the reopening of iconic destinations, including Harrison Plaza, which is being redeveloped into a modern lifestyle hub.
SM Harrison Plaza is set to open by the end of 2027, bringing new life to the former Manila landmark while incorporating spaces designed for today’s consumers.
Tan revealed that the upcoming development will feature a dedicated floor for the youth, recognizing the area’s proximity to schools and its potential as a gathering place for students.
“La Salle is just next door and St. Scho. There’s a lot of schools nearby, and we know that it’s going to be their hangout place, so we’re preparing for that,” he added.
The youth-focused space reflects SM’s efforts to understand the habits and interests of younger mallgoers, creating environments where they can socialize, create content and pursue shared experiences.
For the next generation
To keep up with changing preferences, SM has also been looking toward younger consumers for insights through its Gen Z Council.
“I listen to our people because you don’t know everything, that’s for sure,” Tan said.
This approach is reflected in upcoming concepts such as SM’s new youth-focused wing in China featuring streetwear brands, restaurants, a DJ booth, content creation areas and a skate park.
He said these new concepts are designed to capture the energy and interests of younger generations.
“There’s a DJ in the middle of the mall with a stage and platform. There’s an area for content creators to do TikTok dancing and whatever. We have a skateboard park, you know,” he said.
Green future
Beyond experiences, Tan emphasized that future mall development must also focus on sustainability.
He cited SM’s initiatives in renewable energy, recycling and climate resilience, including 69 malls running on clean solar energy and the expansion of electric vehicle charging stations.
“We want to grow, but we want to grow responsibly,” Tan said.
He shared that SM’s sustainability efforts began decades ago, including the installation of a sewage treatment plant at SM Megamall in 1990 and water catchment systems to help communities manage flooding.
“This is not just about contributing but helping the community where we are in,” he said.
The future of malls lies in continuously adapting to the needs of Filipinos. “It’s not just about creating retail spaces. It’s already creating the experience you can experience in an SM,” he said.
