Local malls are seeing a quick recovery as a result of the strong performance of retail in the first six months which speaks of the resilience of consumption in the Philippines despite economic headwinds.
This also gives insight into the Filipino consumer and what’s unique about the retail landscape in the country.
Dhinno Tiu, The SM Store executive vice president for Operations and Sales Support, said the Filipino consumer today is evolving but still focused on value shopping especially magnified by the pandemic. They are also getting more comfortable with technology as the pandemic pushed digital alternatives in consideration of safety.
But retail spaces, particularly malls, will always be the preferred community spaces in the Philippines for Filipino shoppers.
Beyond the purchase of life’s necessities, malls have evolved into a hub that serves as the modern-day plaza center for communities all over.
“As the new day social platform, the malls are a place of convergence, dining, and shopping, where people can mingle and relax.
Despite e-commerce, brick and mortar spaces will always have a compelling value and relevance for the Filipino shopper,” Tiu said.
Elsewhere around the world, especially in Western countries, shopping malls were affected when Covid-19 struck.
In contrast, shopping and even malling in the Philippines have become an integral part of the everyday Filipino lifestyle.
Crowds have returned to Philippine malls, with SM malls’ foot traffic increasing by more than 100 percent over pre-pandemic levels year-to-date.
The numbers recently posted by SM Retail echoed this activity. Operating over 3,300 stores, SM Retail reported a rise in revenues by 18 percent to P163.7 billion in the first half, buoyed by the return of crowds in physical stores and malls. SM Retail’s net income also grew by 91 percent to P7 billion.
Business renaissance
Renewed economic activity is spurring a revival in livelihood which, in turn, is driving rising incomes across the country. Cash remittances from overseas Filipino workers also hit new highs in July 2022, up 2.3 percent, providing more fuel for spending.
With added resources, Filipinos are returning to shopping, especially in fashion items with vigor. Many also treat shopping as therapy and entertainment.
“People will always go shopping to feel good about everything that is going on,” he said.
“The introduction of our shopper channel (Call to Deliver) enabled us to continue serving our customers during the peak of the pandemic. We were the ones who went and reached out to our customers, offering the convenience of same and next day delivery and personalized service,” Tiu said.
He added that SM will continue building on its strengths to be relevant to its evolving customers. As SM welcomes more people back into its stores and malls, it is working to introduce more experiences, especially to the younger generation with more ‘Instagram-worthy’ areas to go along with its diverse and complete offerings.