Philippine malls lure shoppers with complete holiday experience

Customers are expected to visit after office hours and stay late into the evenings.

Malls in the Philippine capital and nearby areas should create an immersive holiday experience that combines shopping, dining, and entertainment to keep consumers engaged throughout their visit, especially into the late evenings.

“With people willing to spend money and expecting to spend long hours at malls, retail spaces that offer more than just shopping will be the true winners,” Therese Reyes, Asia-Pacific Lead Editor at consumer insight agency Canvas8, told Retail Asia.

To ease traffic congestion during the Christmas holiday, local governments in Manila and cities around it have adjusted mall hours to 11 AM to midnight from 18 November to 25 December. Mall truck deliveries were also limited to 10 PM to 5 AM.

Shoppers are expected to visit malls later in the day, especially after office hours, and stay until late at night to shop for gifts or spend time with family and friends, Reyes said. “Some may even spend an entire day at the mall to tackle their holiday checklists in one trip.”

Reyes noted that Power Plant Mall features upscale decors, holiday fairs, and festive dining options. She noted that whilst the timing of shopping trips might shift, the volume of purchases would likely remain steady. “The changes will likely be more about when they shop rather than what or how much they shop.”

Despite the growing trend of online shopping, Reyes said Filipinos continue to flock to malls during the holidays. More than half of consumers prefer a blend of both online and offline shopping, according to the 2024 Asia Lifestyle Consumer Profile.

Malls are accustomed to shifts in operations In the predominantly Catholic Philippines, where Christmas is a key celebration, Reyes said. Many can easily extend hours, increase staff and offer additional services such as gift-wrapping stations, which often experience long wait times during the holiday rush.

SM Prime Holdings, Inc., the Philippines' biggest mall operator, posted a record net income of $683.5m (P40b) in 2023. Its mall business accounted for 57% of its consolidated revenue. Ayala Malls, the retail arm of Ayala Land, Inc., posted a 31% increase in revenue to P21.1b.

Ayala Malls planned in advance for changes beyond extended shopping hours, including adjustments to traffic flow, valet parking, and delivery services. “We have closely coordinated with our mall partners to align sales announcements and schedules with the Metro Manila Development Authority’s guidelines,” Paul Birkett, chief operating officer at Ayala Malls, told Retail Asia.

He said Ayala Malls deployed additional security personnel and traffic management staff to ensure smooth traffic in and around its malls. “We have improved internal systems, including parking flow and entry/exit coordination, to minimise delays for shoppers.”

Communications are also a priority for Ayala Malls, with updates on adjusted hours and promotions being disseminated on social media, inside malls, and on digital platforms. Birkett said Christmas sales and customer traffic were unlikely to suffer.
Ayala Malls also provides early access to coffee shops, clean facilities, and other conveniences to eliminate waiting on sidewalks, a common traffic congestion cause.

Birkett cited the need to be flexible, adding that they have contingency plans to ensure smooth operations. “If Plan A doesn’t work, we seamlessly switch to Plan B, C, or even Z, ensuring that customers can focus on their holiday shopping without inconvenience.”

“Filipinos absolutely adore Christmas, and I cannot stress that enough,” he said. “Given their love for the festive season, it is only natural for them to spread Christmas cheer by giving gifts and gathering with family and friends.”

“These adjustments, made for the greater good of the city, impact everyone — every customer, retailer, and mall operator. We all work in unison to support this initiative,” he added.

Reyes said the season is all about “combining sales with spectacle and getting everyone into the holiday mood.” “It’s a vibe.”