SM Supermalls reported higher sales and record occupancy in the first half, with president Stephen Tan attributing the results to resilient consumer demand despite cost-of-living pressures.

The Philippine retail giant’s revenue rose 8 per cent year on year to US$667million (PH$41.8 billion), while same-store sales increased 4.8 per cent.

Occupancy reached a record 96 per cent, with most remaining vacancies linked to tenant relocations and store adjustments.

“Consumers have become more intentional with their spending,” Tan said.

“They’re looking for value – not necessarily the cheapest option, but better quality and better experiences that justify their time and money.”

Foot traffic also increased during the period, supported by resilient trading across most retail categories.

SM Supermalls EVP for marketing Joaquin San Agustin said casual dining remained one of the strongest-performing segments.

“Our sales are up, particularly from last year,” San Agustin said. “So basically, almost all categories are relatively holding their own.”

Tan added that dining had become an important part of the group’s tenant mix as SM shifted its focus beyond traditional retail towards experiences that encourage repeat visits.

Some of the malls’ experiential offerings include pickleball courts, running hubs, food halls, game parks and “eat-and-play” concepts.

“A mall can’t stay the same. You have to keep introducing new tenants and new experiences to keep customers coming back,” he said.

SM also continues to expand beyond Metro Manila.

Opening in November, SM Nuvali in Laguna will feature the Philippines’ first LED cinema screen, which SM said will offer brighter images and a more immersive viewing experience than traditional projection systems.

Projects in the pipeline include malls in Tagum, General Trias, Bohol, and Malolos.

“While we’re encouraged by our performance, our focus is firmly on what’s ahead,” Tan added.

“Consumer needs continue to evolve, and we must remain relevant and prepared for future growth.”