SM Prime Holdings Inc. (SM Prime) expects its malls business to remain resilient amid concerns over slower economic growth and governance issues, as it plans to open four new malls this year while foot traffic in existing malls continues to improve.

“We plan to open around four malls this year. These will be located outside of Metro Manila. In terms of size or contribution to our GFA [gross floor area], we are expecting an increase of around three percent to four percent over our existing GFA of 9.7 million square meters (sqm),” said SM Prime President and Chief Executive Officer (CEO) Jeffrey C. Lim in a media briefing.

The four malls opening this year are SM Zamboanga, SM General Trias, SM Tagum, and another SM mall in Santa Rosa City, Laguna province. The first three malls will have GFAs of about 60,000 to 70,000 sqm each, while the new and bigger Santa Rosa mall will have 130,000 sqm as it is a flagship mall.

The other SM located at the Yulo property in Santa Rosa is scheduled to open in the fourth quarter and is the first of SM Prime’s target of opening one flagship mall per year. Next year, SM Harrison Plaza is slated for completion and opening.

SM Supermalls Executive Vice President Joaquin L. San Agustin said, “We are really looking at a very strong 2026 in terms of foot traffic as well as sales. If you take a look at our performance last year, we still had very respectable sales levels even after considering inflation in the fourth quarter.”

He added that growth in the first half of the year will be boosted by fiestas, particularly in the provinces. Foot traffic is also expected to grow due to the return of the Philippine International Pyromusical Competition in March.

For the second quarter, SM malls will have major relaunches, particularly for consumer products. “So, we are being very resilient. We are very confident that we will be able to maintain the foot traffic and the amount of sales for the year,” San Agustin added.

Lim also noted that the economy will continue to be supported by the services sector, particularly business process outsourcing (BPO), and remittances from overseas Filipinos (OFs).

“The only thing about the fourth quarter [of 2025] was because of governance issues. Spending by government was really at the minimum,” he said, but added that the government has assured it will pay legitimate contractors, so spending will increase in the first and second quarters of 2026.

He also pointed out that SM malls have evolved with changing consumer preferences.

“If you go to an SM mall now, you will see a different tenant mix, we’re investing in experiences, and we’re bringing in good brands, major brands with their flagship stores being located in our development. So, with this, our malls will remain relevant, and I think should perform well in 2026,” said Lim.

SM Supermalls averaged 115 million visits a month across its nationwide network in 2025. Total mall visits reached 1.4 billion for the year, reflecting steady consumer activity despite challenging economic conditions and weather-related disruptions.

Monthly foot traffic peaked at 153 million in December, typically the busiest period for retail centers. During the Christmas month, daily visits averaged 5.5 million on weekends and 4.6 million on weekdays.

"As we marked our 40th anniversary last year, we reflected not only on what we have achieved, but on what the next four decades must become,” said SM Supermalls President Steven T. Tan.

He added that, "With our customer as our North Star, we are evolving all for them, transforming their most-loved SM Supermalls not just to respond to needs, but to proactively anticipate them.”

Grounded in real-time customer insights, SM’s mall foot traffic was supported by innovative property attractions complemented by a dynamic tenant mix strategy, introducing first-in-market and first-in-SM experiences that continually refreshed the mall journey.

In 2025, SM Supermalls opened MOA Sky and ScreenX, both the first of their kind in the Philippines. It also introduced SM Active Hub, the country’s largest and most inclusive sports playground.

These were complemented by the expansion of Book Nook reading spaces, purpose-led sustainability initiatives, and curated community events informed by customer sentiment.

During the period, SM Supermalls introduced several brands new to the Philippine market, including Chatterbox Café, Christy Ng, Funko, JD, Läderach, Mak’s Noodle, Oysho, Vivaia, and more.

Foot traffic is expected to remain resilient in 2026, supported by new destination concepts such as Southeast Asia’s first adidas Football Park and adidas Football Specialty Store, alongside the debut of Pop Mart’s first permanent Philippine store at SM Megamall. Both attractions were launched in late December.

“This year, we are bringing in new concepts that reflect how customers live, so every SM mall continues to feel personal, meaningful, and worth returning to,” added Tan.