SM Supermalls expects a stronger Christmas season this year as robust tenant demand and new entertainment offerings give the mall operator confidence that consumer activity will remain healthy through the final months of 2026.
SM Supermalls president Steven Tan said in its mid-year business review on Tuesday that the company was ‘very optimistic’ about the holiday season, citing the positive performance of its malls during the first seven months of the year.
‘Yes, definitely. We’re very optimistic about it. It has always been positive,’ Tan said when asked whether SM expects a better Christmas season compared with last year.
The upbeat outlook follows a record first half for the mall operator. Revenues rose 8 percent to P41.8 billion from P38.6 billion a year earlier, supported by additional leasable space, more tenants and steady foot traffic.
Average daily foot traffic stood at 3.7 million, while gross leasable area increased by 3 percent to 5.1 million square meters.
The number of tenants likewise climbed by 4 percent to 23,174.
Tan said SM’s occupancy rate has reached a record 96 percent, up from 94 percent last year and 92 percent the year before.
He said the few remaining vacancies largely reflected tenant changes and relocations.
Dining has also emerged as a major growth driver, with Tan saying the segment had expanded by 30 percent.
Unlike some retail purchases, he said dining remains difficult to replicate through online channels because consumers continue to seek freshly prepared food and the restaurant experience.
SM is counting on entertainment and new technology to further draw shoppers during the crucial fourth quarter.
Tan pointed to a strong movie lineup and SM’s investments in cinema formats, including IMAX, ScreenX and LED screens. He said constant innovation was necessary as consumer preferences continued to evolve.
The mall operator plans to sustain that momentum by introducing new brands and expanding its cinema, entertainment and leisure offerings.
SM will also expand its footprint before the holiday rush with the opening of SM Nuvali on Nov. 27. The property will become its 91st mall in the Philippines and will serve as its newest flagship development in the South.
Tan said the upscale mall would mark the ‘next expression of the SM experience’ as the company taps the emerging growth corridor of South Luzon and Calabarzon.