By Beatriz Marie D. Cruz, Reporter

DESPITE consumers cutting down on expenses, the demand for physical experiences remains strong, driving mall operators and retailers to innovate and expand their offerings, according to industry players.

Amid the e-commerce boom, Fisher Retail, Inc. has been catering to the demand for “experiential” dining and entertainment in its malls, Fisher Retail President Robert Raymond F. del Rosario said in an interview with BusinessWorld.

“We’ve noticed that people are cutting down on expenses, but they’re still after that physical experience,” he said.

Fisher Retail operates Fisher Mall, which has two branches in Metro Manila — one in Quezon City and another in Malabon City.

The malls are “community-driven” given their proximity to schools and residential areas, according to Mr. Del Rosario.

When the company first opened its Quezon City branch in 2014, 70% of its tenants were from retail, while 30% were in food.

“But then, over the next couple of years, we saw this shift towards 60-40,” Mr. Del Rosario said.

Philippine malls are expected to be “more experiential and less transactional” this year, according to property consultancy firm Colliers Philippines.

Retail trends that are expected to take over include more immersive experiences, family entertainment centers, expanded food halls, and upgraded cinemas, according to its 2025 outlook report.

To stay competitive amid the growth of e-commerce, Fisher Retail has expanded its dining options and has been creative in its mall activities, Mr. Del Rosario noted.

“E-commerce is strong globally, but here, even though we do have that, it’s still different because people want to see each other and hang out, and so that’s what we’re leveraging here,” he said.

As an example, Fisher Mall Quezon City held a lookalike contest in December to promote the premiere of Renaissance: A Film by Beyoncé.

In November, Fisher Mall also held its spinoff of the Black Friday sale, called the Black Out Sale, offering up to 70% in discounts.

“We’re finding ways to address rising costs by introducing more sales and looking at how we engage the customer,” Mr. Del Rosario said.

METRO RETAIL STORES
“We’re actually revisiting our expansion plans and looking at how we can make the spaces more productive, especially if the store has already been built, so what more can we do about it,” Metro Retail Stores Group, Inc. Chairperson Sherisa P. Nuesa told BusinessWorld.

“There are challenges, but there are also a lot of opportunities with consumers’ willingness to spend.”

Metro Retail, which operates around 70 stores across Luzon and Visayas, has used data analytics to provide more curated offerings and changes in the use of its retail spaces, according to Ms. Nuesa.

“There’s a lot that can still be done to make the spaces productive, notwithstanding that it has been very, very competitive.”

Ms. Nuesa also cited expansion opportunities in the Visayas, driven by faster economic growth and its increasing acceptance of modern retail.

For its part, Fisher Retail plans to build up to three new malls in the next two to three years, Mr. Del Rosario said, noting that it has been considering areas both within and outside Metro Manila.

It also expects up to five new tenants in its Quezon City mall early this year. For the Malabon branch, it is eyeing a 5-10% increase in tenants in 2025.

Likewise, Metro Retail plans to open 12 new stores this year, it said in December.

“The competition from online platforms is quite tough. But I think what’s unique about the retail market is there’s a lot of resilience and ability to adjust,” Ms. Nuesa said.