Ayala Malls takes bold leap into high-tech redevelopment

Central to this redevelopment are experiential stores that merge shopping with the latest technological innovations.

Ayala Malls, a leading mall operator in the Philippines, is integrating cutting-edge interactive technology and creating immersive shopping experiences in its extensive redevelopment of flagship properties.

In an interview with Retail Asia, Paul Birkett, chief operating officer of Ayala Malls, said that the initiative aims to seamlessly blend physical and digital experiences, enhancing customer engagement through advanced technology and innovative retail concepts.

The properties set for redevelopment include Glorietta, Greenbelt, TriNoma, and Ayala Center Cebu.

“Some of the aspects of those malls are over 30 years old, and the impacts of recent changes have made us look at a call to action,” said Birkett. “Customer habits and preferences have evolved, and we feel it’s a perfect opportunity to usher in a new era for Ayala Malls and a new experience for our customers.”

Central to this redevelopment are experiential stores that merge shopping with the latest technological innovations.

These new retail concepts will feature a variety of interactive elements, such as augmented reality (AR), which will allow customers to visualise products in real-world settings, enhancing their shopping experience.

Digital changing rooms will include screens for virtual try-ons, streamlining the shopping process and increasing convenience. Interactive displays will provide real-time product information and personalised recommendations, creating a dynamic and engaging retail environment.

“We’re working on spaces with major brands to create multi-level retail stores in spaces that have previously not been considered,” he said. “We want these to be one of a kind [and] first in the Philippines.”

He mentioned that their team is actively exploring both physically and digitally around the world to ensure they surpass the highest standards.

“We’re gathering insights, meeting retail concepts and mall developers. We want to see what the rest of the world is doing and what has a relevance back here in the Philippines,” said Birkett.

Redefining ‘third spaces’

Birkett said Ayala Malls plans to redefine “third spaces”— areas beyond home, work, or school — aiming to set a new standard in retail. The goal is to create exciting and memorable environments for Filipinos where they can interact with each other and their favorite brands.

Currently, the retail industry faces a paradox of space where retailers struggle with having too much space that does not meet their needs and not enough of the right-sized space.

“The development of experiential retail, the advent of just in time logistics, AI based sales projections mean that retailers need more focus on shop floor spaces, selling space, and less space driven to inventory storage,” he noted.

The redevelopment will include updated mall interiors and exteriors, with modern aesthetics and improved navigation. Lush greenery and open spaces will be incorporated to enhance the mall environment.

New designs will feature pop-up areas for temporary shops and unique experiences, as well as multifunctional spaces that showcase emerging brands and local artisans. The introduction of themed environments, amusement parks, and cultural exhibitions will further enrich the mall experience, making it a destination for both leisure and discovery.

Aside from attracting shoppers, Birkett emphasised the aim to create dynamic mall environments that inspire and challenge merchants to innovate continuously.

Ayala Malls experienced strong double-digit growth in 2023, with footfall rebounding significantly post-pandemic.

“It continues to be a strong period, and I guess that's where the caution is needed during these refurbishments that we can’t damage as people’s businesses are growing so strongly after so many years of difficulty during the pandemic,” said Birkett.

He said the positive trend continues in 2024, with many new international brands signing up.

Birkett assured that the company’s focus remains on understanding customer needs and designing malls to sustain upward growth.

Technological integration

Technological integration will also be a key aspect of the redevelopment, with advancements such as AI-driven personalised recommendations and seamless online-offline shopping experiences.

Additionally, smart building management systems, using IoT, sensors will optimise performance and sustainability, ensuring an eco-friendly and efficient operation.

“Tech goes far beyond the customer experience. We utilise new technology to make our retail time partners with us even better,” said Birkett. “We're investing in cutting edge software to support retail, minimising delays and making submissions and approval seamless, getting stores open quickly so that everyone benefits.”

Commitment to sustainability

Despite the focus on technology, sustainability remains a key focus. Birkett said the malls will use 100% renewable energy, incorporate solar power, and harness natural daylight through open skylights.

Low-impact washrooms, rainwater harvesting, and sustainable materials will help minimise environmental impact. IoT sensors will manage comfort equipment, ensuring optimal performance with AI and machine learning.

Ayala Malls will also expand its EV charging stations and partner with companies to recycle materials and reduce landfill waste, embedding sustainability into every aspect of the redevelopment.

Addressing challenges

Renovating multiple malls simultaneously presents logistical challenges, but Ayala Malls is prepared to address them, said Birkett. The focus extends beyond construction to include optimising the retail mix and ensuring minimal disruption to ongoing trade.

“Construction logistics, that's the easy part. Retailer logistics, that’s the difficult part. You’ve got hearts and minds and personalities and people’s lives to contend with,” Birkett stated.

He added that strategic partnerships and innovative approaches will help mitigate the impact on retailers and customers.

Broadening reach

Ayala Malls also plans further expansions and new developments, with projects in Marquee Mall, Solenad, Abreeza in Davao, and Fairview Terraces.

Birkett said the focus is on expanding reach beyond Makati and creating cohesive communities that integrate commercial, residential, and retail spaces.

“We have a significant double-digit number of sites that we're looking at at the moment, and there will certainly be some new malls coming out over the next five years as well,” he said.