Consumers indulging in optional spend, says SM
More Filipinos are flocking to SM Supermalls to dine in, buy necessities, go on shopping sprees and watch movies, among others, all showing a shift to discretionary spending from the public.
The mall operator reported on Wednesday that its daily foot traffic grew to over 4 million in the first quarter from 3.3 million in the same period last year.
“The increase in foot traffic reflects our steadfast commitment to meeting the daily needs and wants of our customers. Our malls serve as dynamic hubs that blend modern retail services with vibrant entrepreneurial environments,” SM Supermalls resident Steven Tan said.
The unit of SM Prime Holdings Inc. noted that 30 percent of its mall spaces were leased by food tenants, three times compared to just 10 percent a decade ago.
Non-food tenants occupy half of the gross leasable areas. The remaining areas are rented by service-related concessionaires.
“Amid a shift towards discretionary spending, Filipino consumers increasingly visit malls for leisure and dining experiences,” SM Supermalls said.
SM malls, apart from being a food and shopping hub, have been establishing more attractions to encourage more visitors.
One of them is Space & Time Cube+ at S Maison, which is an immersive art museum. It also provides a venue for popular culture gatherings for K-pop and anime fans, among others.
It also launched Game Park at SM Mall of Asia last year. It is a 1,947-square-meter indoor entertainment complex with amenities like bowling alley, basketball court and indoor archery.
“SM continues to innovate and elevate customer experiences. Our goal is to create lasting memories through dynamic destinations that complement traditional shopping,” Tan said.
In May, the company opened the SM City Caloocan. Other malls slated for launch this year are SM City J Mall in Mandaue, Cebu, SM City San Fernando in La Union and SM City Laoag.
SM Supermalls saw its revenues grow by 7 percent to P18.2 billion in the first quarter as mall rental income climbed by 8 percent to P15.8 billion.
