PH malls: From retail stops to community shapers

Ayala Malls Arca South is tipped to become the estate’s lifestyle anchor, with a curated mix of retail, dining and entertainment experiences. —PHOTO FROM AYALA LAND WEBSITE

Modern shopping establishments in the Philippines are considered to have started with the storied Crystal Arcade of the Commonwealth period, a time of upheavals between two world wars.

And yet its very name alluded mainly to its architectural features, unlike Ali Mall of the 1970s.

Built on the euphoria of global attention to the Philippines, having hosted the modern gladiatorial blockbuster that was the “Thrilla in Manila” in 1975, it prepared Filipinos for a word that would define a deeply ingrained facet of our culture.

Of course, during that turbulent decade, there was also Harrison Plaza. This differentiated itself from its predecessors and contemporaries alike with what was then a luxury—air conditioning.

In 1985, the Oxford English Dictionary noted the first evidence of the use of the word “malling.”

This was from journalist and essayist William Kowinski’s book “The malling of America: An inside look at the great consumer paradise.” [Meanwhile, dictionary.com puts the earliest use of that word in the period “1975-1980.”]

Also in 1985, a decade after Muhammad Ali’s unforgettable triumph against Joe Frazier at Araneta Coliseum, the SM group leveled up from simply having Shoemart department stores and opened its first mall—SM City at the corner of Edsa and North Avenue in Quezon City.

SM describes the debut of SM North Edsa as “a time when the country was in a state of political and economic turbulence.”

But when else does an iconic commercial hub open in the Philippines, if we go by the experience of Crystal Arcade, Ali Mall and even Harrison Plaza?

And again, also, if we may add, when else would a consequential newspaper like the Philippine Daily Inquirer get founded and proceed to chronicle the development and redevelopment of retail spaces in the country?

Then came 1989, an undoubtedly eventful year not just in the Philippines but worldwide.

The worst coup attempt against Cory Aquino’s administration, the fall of the Berlin Wall, the Tiananmen protests and massacre, revolutions against communist regimes in Europe—we would sound like a Billy Joel song if we went on.

That same year, the Gokongwei group completed works on their very own Robinsons Galleria. It opened its doors in January 1990, just a month after the Edsa Shrine was inaugurated.

A few weeks later, the horde of marchers celebrating the anniversary of the People Power Revolution had an additional activity after the day’s street program—go malling.

In 1991, still in the same neighborhood, SM opened Megamall in June and the Kuok group’s Shangri-La Plaza debuted in November.

The SM group says Megamall in Mandaluyong City “spearheaded” what is now known as the “malling” phenomenon in the Philippines. —CONTRIBUTED

Both diverted some foot traffic from the nearby Manuela 3 of the Villar group, which, after enduring rehabilitation later in the decade, would rename it as Starmall Edsa.

Southward, across the Pasig River, the Ayala group also did its own rebranding.

The commercial enclave that is home to various department stores and shopping hubs—including SM Makati, the Gloriettas (there are now five) and the Greenbelts—was rechristened as Ayala Center.

These same groups, as well as other players, would replicate these projects in other regions and provinces across the archipelago.

So, over those decades, particularly in the past 40 years, what have arcades, department stores and malls become?

‘Lifestyle and experience hubs’

Steven Tan, president of SM Supermalls, told Inquirer Business that malls today are evolving into “lifestyle and experience hubs” rather than just shopping centers.

Tan said they were integrating technology, from cashless payments to click-and-collect services, through platforms like the SM Malls Online app.

He said sustainability was also a major focus.

For instance, SM City Fairview now features the Philippines’ largest rooftop solar panel system, having a capacity of 3.785 megawatts and covering 4.3 hectares.

Tan added that “experiential spaces” are key.

He cited Mall of Asia’s MOA Sky, which has a Fifa-grade football field and rooftop leisure areas like MOA Paw Park and MOA Sanctuary, as a great example of how the SM Group is creating destinations for recreation and community engagement.

SM Mall of Asia’s MOA Sky features a Fifa-grade football field and rooftop leisure areas. —CONTRIBUTED

“These trends ensure our malls remain relevant by offering what online shopping cannot: immersive experiences,” he said.

Tan added that the Covid-19 pandemic forced the SM group to rethink operations and prioritize health and safety through initiatives like Safe Malling at SM.

“Beyond that, e-commerce growth continues to reshape consumer habits, so we’ve invested in omnichannel solutions,” he said.

Further, economic pressures like inflation affect spending and maintaining aging malls requires significant redevelopment.

Thus, the group has embarked on projects like the renovation of Megamall and expansion of MOA.

Environmental challenges also pushed the group to innovate.

Malls such as SM City Masinag have rainwater catchment basins to prevent flooding, while SM City Marikina was built on 246 stilts to allow floodwaters to flow underneath the property.

“These hurdles drive us to be more agile and sustainable,” Tan said.

Over the past four decades, mall culture in the Philippines has transformed dramatically.

By the 2000s, malls had become community hubs. Aside from cinemas, additions have included churches and even skating rinks, like the Olympic-sized one at SM Megamall.

“Today, malls are experiential spaces blending retail, leisure and culture,” Tan said.

For example, SM Mall of Asia hosts global trade expos and concerts while SM Aura offers art installations, lifestyle zones and recently featured the 39th Negros Trade Fair.

“We are evolving with our customers—from transactional to experiential—and continue to become integral to Filipino life,” Tan said.

For the Gokongwei group, their Opus Mall at Bridgetowne Destination Estate in Quezon City, “continues to redefine” the mall experience in the Philippines.

“Our vision has always been to create destinations that elevate how people live, connect, and experience life,” said Mybelle Aragon-Go Bio, president and CEO of Robinsons Land Corp.

Opus is “an evolving refined space” designed for leisure-seeking families and urbanites. —PHOTO FROM ROBINSONS LAND WEBSITE

Thus, Opus is home to several “first-in-the-market concepts” like Spatio, touted as the first integrated shop-within-a-shop lifestyle destination that brings together upscale retail, a barber lounge, wine bar, café and waxing salon in one “curated space.”

For family entertainment, Opus features the first Funtopia Park, a steampunk-inspired indoor playground where kids can climb, slide and explore freely.

Lingkod Pinoy Center

Meanwhile, Robinsons malls have their Lingkod Pinoy Center, which the group describes as a lifeline to millions of the Filipino workforce by enabling access to multiple government agencies in one space.

This was established in 2011, with the anticipation that settling government dues and documents could become challenging, especially with the growing workforce in the city.

Government satellite offices at the Lingkod Pinoy Center include Pag-Ibig Fund, PhilHealth, Social Security System, Department of Foreign Affairs, Government Service Insurance System, PhlPost, Land Registration Authority, National Bureau of Investigation, Land Transportation Office, Philippine Statistics Authority/PhilSys, Commission on Elections, Professional Regulatory Commission and many others.

For the Megaworld group, their malls are seamlessly integrated into their townships, with retail, dining and leisure options “tailor-fit to the needs of each community.”

Megaworld Lifestyle Malls is expanding its commercial retail portfolio by more than 30,000 square meters.

This is in response to strong demand for premium commercial spaces in key growth areas, especially in Megaworld townships.

The company is growing its leasing business by bringing its signature lifestyle mall concept to more locations while introducing new experiences that resonate with today’s consumers.

“This approach allows us to drive sustained growth for Megaworld and, at the same time, enhance the value of our townships nationwide,” said Graham Coates, head of Megaworld Lifestyle Malls.

The Ayala group’s Ayala Malls Arca South, which is set to open this month, is poised to serve as the estate’s central hub in Taguig City.

“The first phase is launching at the end of the year, and it will be a reflection of a new way of thinking about what community centers are, most especially destination centers,” said Mariana Zobel de Ayala, head of Ayala Land’s leasing and hospitality group.

“We envision Ayala Malls Arca South as the ultimate destination marketplace—fresh produce, flowers and plants, crafts, pa-luto, and coffee roasteries—all anchored on the best of the Philippines,” Zobel said. “If we succeed, it will be a place people will go out of their way to travel to.”

For the SM group, the future is about evolving their footprint and spaces through reinvention and expansion.

Within the Philippines, SM is investing over P150 billion in the next five years to build flagship malls like SM Sta. Rosa (Nuvali) and premier malls like Harrison Plaza.

That is, a new Harrison Plaza, which will be fully SM operated rather than just a location of an SM establishment.

“Our vision of our new era is clear—malls will remain cultural and social anchors, blending retail with green spaces, technology and community engagement—creating destinations that matter for generations,” SM’s Tan said.