Beyond the shopping bag
The Philippine retail sector remains a dynamic and thriving industry.
In recent years, however, it has evolved considerably as consumer needs change, economic conditions become more challenging, and technology continues to advance. These have been pushing retailers and property developers to become more agile and customer-focused while finding new ways to deliver valuable shopping experiences.
Healthy leasing activity
In its Asia Pacific Retail Trends report for the third quarter of 2026, real estate services and investment firm CBRE noted that retail leasing activity in the Philippines remains healthy in prime districts, with retailers actively expanding.
“High occupancy in shopping mall ground floors is forcing retailers to consider high streets and office podiums. The food and beverage (F&B) sector, especially casual dining formats such as coffee and bubble tea shops, is most active, with both international and local groups expanding their footprint,” the study noted.
This trend was also highlighted in a 2025 study by Leechiu Property Consultants (LPC). According to the firm’s research, the Philippines’ top three mall operators surpassed their pre-pandemic performance, recording a 19 percent increase in overall revenues compared with 2019.
The same data showed that revenues from F&B retailers exceeded pre-pandemic levels by 11 percent, outperforming other categories and reinforcing the sector’s role in the recovery of retail real estate.
LPC noted that the F&B segment helped drive steady retail growth, emerging as a major contributor to mall traffic and tenant performance. This reflects the return of discretionary consumer spending and the cultural significance of dining out in the Philippines.
“F&B thrives on in-person experiences so the global shift to e-commerce had less effect on this segment. Restaurants, cafés, dessert shops, and quick-service formats benefit from their ability to create atmosphere, community interaction, and lifestyle value that cannot be replicated online,” LPC had said.
Developers have also been expanding F&B spaces in their mall designs and tenant mixes.
“This dynamic made F&B tenants essential in newly designed malls and mixed-use developments, which increasingly prioritize open air dining, lifestyle zones, and community integration,” LPC added.
Wellness and value for money
Retail growth in the country, however, is not limited to the success of the F&B sector.
CBRE highlighted in its latest study that growing consumer interest in health and wellness has created demand for related businesses. Gyms, spas, and clinics are leasing spaces inside and outside shopping malls, while international footwear and athleisure brands are planning to enter the market.
CBRE also noted diverging performances in the fashion and apparel sector.
“With local consumers prioritizing value for money, brands with competitive pricing are doing well, while premium brands’ sales are slowing,” the firm said.
The experience factor
Meanwhile, demand for experiential retail has contributed to higher space absorption in prime malls and neighborhood retail centers.
CBRE noted that the growing popularity of experiential retail is reshaping how landlords select and organize their tenants.
“Many property owners are designing mall ecosystems with the purpose of increasing dwell time and sales. Examples include a mid-to-high end mall which has assigned prime space to local designer brands, which are rotated regularly. This concept is attracting higher-spending customers and boosting overall mall performance,” CBRE said.
“Consumer preferences for open space, natural lighting, and greenery are prompting landlords to upgrade their malls. Owners of older shopping centres are refurbishing their assets to capture demand,” it added.
Third spaces
In 2025, Ayala Malls outlined plans to create smoother transitions between indoor and outdoor spaces and introduce more “third spaces.”
These are comfortable community hubs where visitors can relax, socialize, work, or enjoy cultural activities, ranging from co-working corners to art zones.
“These aren’t just reimagined Ayala Malls, they’re
vibrant, well-crafted spaces where real moments unfold and communities connect,” Ayala Malls chief operating officer Paul Birkett earlier said.
Ayala Malls also pushed for refreshed mall designs featuring wider walkways, improved access points, more comfortable seating areas, enhanced restrooms, and better digital connectivity throughout its malls.
Sources: Inquirer Archives, cbre.com, ayalaland.com
