CONSUMERS are visiting shopping malls less frequently amid higher fuel and parking costs but are spending more time during each visit, according to an executive of listed property developer Megaworld Corp.
“They don’t go as frequently as before but when they go, they spend longer. Also, because, like you’re saying, parking is a little more expensive, fuel is a little more expensive. You also maximize your visits,” Megaworld Lifestyle Malls Head Javier D. Hernandez told reporters on Thursday.
“Traditionally, Filipinos, it’s about 3-4 hours that they spend in a mall. It’s about that. It’s a meal, a movie, and then hanging out, 3-4,” he added.
Mr. Hernandez said mall operators need to adjust their tenant mix as consumers become more cautious about spending and prioritize certain activities over others.
“You have to fine tune the mix to be able to make sure you capture their spend. They might not be spending on one category, but they’re spending on the other,” he said.
He noted that consumers may reduce spending on movies or shopping while continuing to spend on other activities during their mall visits.
Mr. Hernandez also cited demand for spaces where consumers can socialize and spend time with family and friends.
“People are looking for convergence areas. People are looking for where I can sit down with my friends and catch up. They’re looking for that human connection again,” he said.
His remarks come as Megaworld pursues its previously announced target of expanding its retail gross leasable area (GLA) to one million square meters (sq.m.) by 2030.
The company plans to develop additional lifestyle malls and expand its existing retail portfolio, which currently comprises 27 malls nationwide.
Megaworld said it plans to break ground on new developments in Cavite, Rizal, Pampanga, and Bacolod City between 2026 and 2027.
Mr. Hernandez said the company would continue exploring retail formats that complement its township developments while adjusting its offerings to consumer preferences.
“We will keep improving the customer experience, bringing relevant and innovative concepts into our malls, creating more opportunities for our mall partners, and exploring new retail formats that complement the continued growth of Megaworld’s townships,” he said.
The company’s existing township malls, including those in Eastwood City, Uptown Bonifacio, and Venice Grand Canal Mall, will continue to focus on mainstream and community-oriented retail.
Mr. Hernandez succeeded Graham M. Coates, who headed Megaworld Lifestyle Malls for eight years.
He has more than 30 years of experience in property development, retail, hospitality, and tourism, including two decades in mall operations and commercial development.
During Mr. Coates’ tenure, Megaworld Lifestyle Malls undertook developments including The Imperial Wing at Lucky Chinatown, The Shoppes at McKinley West, and the redevelopment of Eastwood City.
Alliance Global Group, Inc. Chief Executive Officer Kevin L. Tan said Megaworld would continue introducing international retail brands alongside local concepts.
“We will continue to bring in global brands and new concepts, while creating more opportunities for Filipino brands and experiences that make each of our destinations distinct. There is still a lot we can do, and we are excited about what comes next,” he said in a statement.
At the local bourse on Thursday, Megaworld shares rose by 1.36%, or three centavos, to close at P2.23 apiece. — Juliana Chloe A. Gonzales