Rethinking retail: How SM Supermalls adapts to shifting consumer habits and evolving public spaces

Malls have long been a fixture of urban life – a place for errands, shared meals, and unhurried weekends. But as consumer habits evolve and digital convenience redraws expectations, a more pressing question emerges: what, exactly, is a mall for today?

In an exclusive interview, SM Supermalls Executive Vice President for Marketing Joaquin San Agustin made a brave declaration: malls today shouldn’t chase reinvention for its own sake, but instead focus on steady, continuous adaptation.

“We’ve never really believed in staying the same. Even when something works, we look for ways to improve it,” he told adobo Magazine. 

That mindset has carried the company through multiple phases of retail evolution — from the rise of big-box formats to the current era of experience-driven spaces. Its recent recognition as Organization of the Year at the 2026 Asia-Pacific Stevie Awards, earning the Grand Stevie for the fourth time, marks another milestone, but Joaquin frames it less as a culmination and more as a reflection of ongoing work.

“[Stevie Awards] reflects our ability to continuously evolve. If there’s one defining trait of SM Supermalls, it’s that we never remain static. We don’t rely on a single formula; we constantly push ourselves to innovate and serve our customers better,” he said. 

L-R (SM Supermalls SAVP for Mindanao Marketing Russel D. Alaba, EVP for Marketing Joaquin San Agustin, SAVP for China Marketing Vivian Chen, and SAVP for Premier 3 Marketing Krisel Ramilo)

Joaquin continued, “Even when something works, we look for ways to elevate it further. Today, it’s no longer just about accessibility or having the most stores. The market is seeking more immersive, experience-driven environments, and that’s where we’ve focused our efforts.” 

Joaquin also reflected on how SM Supermalls has repositioned itself beyond traditional retail by focusing on innovation and a deeper understanding of customer experience. Rather than defining malls solely as spaces for shopping and dining, he highlights a shift toward designing environments that respond to both functional needs and emotional expectations — how people use a space and how it makes them feel. 

“We look at the full spectrum of customer experience, from functional to emotional benefits. This evolution is evident not only in our mall designs, but also in how we collaborate with our tenant partners to enhance their storefronts and layouts.” 

This evolution is visible not only in mall architecture and tenant collaborations but also in the growing recognition of initiatives outside commerce, with a significant portion of awards now coming from sustainability efforts and community-driven programs. This way, SM Supermalls expands its role from a commercial hub into a platform that engages with broader social concerns.

“SM Supermalls is no longer just about dining and shopping. It now represents a broader commitment to sustainability, inclusivity, and social impact,” Joaquin said.

Navigating cultural, economic, and consumer differences 

Joaquin emphasizes that SM Supermalls’ approach to operating across the Philippines and China is grounded in responsiveness rather than uniformity. With a portfolio spanning vastly different cultural and economic contexts, he explained that the company maintains consistency not by replicating the same model everywhere, but by staying closely attuned to local customers whose preferences ultimately shape each mall’s evolution. 

“We currently operate around 90 malls in the Philippines and nine in China. The key is staying deeply attuned to our customers, as they ultimately shape how our business evolves.”

This customer-centric mindset is complemented by strong partnerships with tenant brands, which he identifies as “essential” to delivering a cohesive mall experience. 

“Equally important is our relationship with tenant partners. They play a crucial role in delivering the overall mall experience. As one of our leaders once said, even in challenging times, those with stronger tenant relationships are more likely to succeed.” 

However, Joaquin pointed out two major challenges in managing the retail ecosystem across diverse markets. This includes the rapid evolution of consumer behavior and the continued rise of ecommerce. 

He noted that engaging younger audiences like millennials and Gen Z has significantly reshaped marketing and retail strategy, as their expectations extend beyond functionality to include visually engaging, inclusive, and sustainability-driven experiences. 

At the same time, the growth of online shopping has intensified pressure on physical retail spaces, pushing malls to redefine their relevance. For Joaquin, the answer lies in transformation, positioning malls as experiential hubs that offer something digital platforms cannot replicate, particularly in terms of physical presence, social interaction, and immersive environments.

“One of our most significant innovations is how we’ve reimagined mall spaces. A great example is the MOA Sky, which brings together a FIFA-grade football pitch, an amphitheater, a religious museum, the country’s largest paw park, a one-kilometer running path, and green gardens — all on a single rooftop,” Joaquin exemplified. 

“This reflects our shift from traditional mall concepts toward multi-dimensional, experience-driven spaces. Beyond dining and shopping, we’re also advancing sustainability and inclusivity through initiatives under SM Cares,” he continued. 

Rejecting complacency

When asked how SM Supermalls cultivates a culture of innovation and consistency across its large network, Joaquin said it begins with a refusal to become complacent. He explains that the organization is driven by a constant push to go beyond expectations — not only through meeting customer needs, but through consistently exceeding them. 

“Creating a ‘maxed-out’ experience is key. That drive to continuously improve — for our customers, tenant partners, employees, and stakeholders—is what sustains our momentum,” he explained. 

As a repeat Grand Stevie winner, Joaquin also frames SM Supermalls’ broader role in shaping the future of retail and mixed-use development in Asia as one of benchmark-setting. 

He said that the goal is to “continuously raise the bar in consumer marketing and mall development,” influencing not just the Philippine market but the wider region by redefining what modern retail spaces can be.

adobo Magazine is the official media partner of the 2026 Asia-Pacific Stevie Awards.

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