Physical retail remains the center of modern customer experience - SM Supermalls President Steven Tan

Digital may be disrupting the landscape, but physical retail remains the preferred channel for core and emerging customers—this is the theme of SM Supermalls President, Steven Tan's keynote at the National Retail Federation (NRF) Big Show Asia Pacific 2026 in Singapore.

Tan addressed an audience of international retailers on best practices that could help future-proof their businesses against industrial transformations and changing customer behavior. He emphasized demand simply redirects amid a rapidly evolving customer base of digital natives and against the economic challenges brought about by the fuel crisis. "At SM Supermalls, we’ve learned that downturns don’t change the direction of demand. Even in challenging times, people still go out — they simply become more intentional about where they spend their time and money," he said.

The price of growth is taking value-driven risks

In 2025 SM Supermalls celebrated its 40th anniversary, punctuated with the launch of an ambitious roadmap delivering one flagship mall every year from 2026 to 2030. The retailer currently has 90 most-loved malls in its Philippine portfolio with an additional 9 in China.

Tan underscored that this expansion did not come easy for the retailer which opened its very first mall—SM North Edsa—in the middle of local political upheaval.

"SM continues to invest when others pull back. We see uncertain periods as opportunities to build, redevelop, and create better experiences for the long term. Over time, experience taught us that challenges are temporary. Across decades, SM has weathered multiple disruptions—from the 1986 People Power movement, the 1997 Asian financial crisis, the 2007 housing slowdown, and the 2020 pandemic—but recovery has always followed." Tan attributes this playbook to the company's core belief of staying anchored to its responsibility to a wider ecosystem of stakeholders--not just customers, but communities relying on its business. 

Shortly after his appointment as SM Supermalls President, the COVID-19 pandemic stalled the Philippine economy and Tan had to navigate the company's survival under the guidance of Mr. Hans Sy, Chairman of SM Prime's Executive Committee.

"The pandemic reinforced a core belief: leadership must be values-driven. With no clear playbook, decisions were guided by care, responsibility, and doing what was right—not what was easiest. Because of this, we choose to see opportunity in difficult moments. Periods of uncertainty often become windows for expansion, redevelopment, and long-term investment."

Experiences worth returning to

Touching on how SM continually meets customer expectations despite the growing influence of e-commerce and more demanding expectations rising from Gen Z and Gen Alpha, Tan implored retailers to return to experience.

"People no longer visit malls just to shop — they come for dining, entertainment, services, community, and experiences they cannot get online," said Tan "That’s why SM invests at scale. We are building future-ready malls and communities designed around the long-term shift toward experiential retail, connection, and everyday life."

With the experiential retail market projected to grow from $132 billion to $540 billion by 2035, Tan pointed out that retailers must seize the opportunity to capture their market by keeping their ears on the ground.

"Think like a customer, not a mall. Because customers return to what they love — and our job in retail is to make it worth loving. When we do that, every decision becomes clearer. We improve the experience, remove friction, and focus on what truly brings people back."

The NRF Big Show is a premier international trade event that assembles over 11,000 retail professionals from all over the world to explore the future of commerce in fast-growing markets.

About SM Supermalls

SM Supermalls is evolving—shaping how people live, connect, and experience life today. More than a place to shop, it is the country’s most loved mall and an everyday destination designed around the lifestyles, passions, and needs of Filipino communities, delivering new finds, fresh concepts, and meaningful experiences, All For You.

As one of Southeast Asia’s largest mall developers and operators, with 90 malls in the Philippines and 9 in China, SM Supermalls continues to evolve its spaces, experiences, and partnerships, building destinations that grow with communities and remain trusted, relevant, and loved for generations. Your Most Loved Supermall, SM — All For You.