SM Supermalls is charting an ambitious course for the next five years, with president Steven Tan revealing in an exclusive interview with DAILY TRIBUNE that they are targeting double-digit annual growth as it pours more than P150 billion into new developments and major redevelopments.
The investment, announced as part of SM’s 40th anniversary roadmap, includes the launch of one flagship mall each year from 2026 to 2030, the construction of 12 new lifestyle malls, and the redevelopment of 16 existing properties.
Tan emphasized that the biggest malls in SM’s portfolio will take priority in the redevelopment push.
“Of course, our anchors – Megamall and North EDSA. But equally important, we have very important malls like Pampanga and Clark, which are also in our top 10 malls,” Tan said.
“So these would get the lion's share: the big ones – Clark, Pampanga, Lanang, Fairview, Megamall, and North EDSA.”
The redevelopments will feature open-air promenades, lifestyle zones, and green design elements, aligning with SM’s pledge to achieve net-zero emissions by 2040.
SM’s aggressive expansion and modernization strategy are expected to drive sustained momentum.
“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.
“And so far, we're hitting that. Hopefully, we’ll be able to sustain double-digit growth until 2030.”
Industry observers note that SM’s performance will largely hinge on consumer spending recovery, regional economic growth, and the company’s ability to balance retail, lifestyle, and digital integration.
Beyond malls, Tan said SM is also investing in arenas and convention centers to enhance its estate development strategy.
“As you know, we will be opening our arena soon in Cebu, and even our convention center in Cebu,” Tan shared.
“They are not a major part of the component, but we have to do this to enhance the whole estate. Because if you do – well, 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.”
The strategy underscores SM’s shift from being just a mall developer to a builder of integrated lifestyle destinations that combine retail, leisure, and business facilities.
Since opening SM North EDSA in 1985, SM Supermalls has grown to 88 malls nationwide, welcoming millions of visitors weekly and hosting thousands of global and local brands.
The company is celebrating its 40th year with its biggest shopping event yet, offering over 4,000 exclusive deals across its mall network.
Tan, who has led SM Supermalls through the pandemic and into its digital and sustainability transition, credited the company’s growth to its enduring relationship with Filipino communities.
“From the very beginning, SM was built on trust and relationships. We only win when our partners win,” Tan said.
“Our promise is simple: everything we do is all for you.”