GROCERY and convenience-store operators accounted for the largest share of new retail space requirements in Metro Manila during the first half, as consumers increasingly prioritized value-oriented spending, according to real estate consultancy PRIME Philippines.
Grocery and convenience stores represented 37% of new retail space requirements in the National Capital Region, equivalent to about 35,500 square meters (sq.m.), PRIME Philippines said in its midyear market report released last week.
General merchandise followed with a 28% share, while health, wellness and beauty concepts accounted for 21%. Food and beverage (F&B) tenants represented the remaining 14%.
Sondi Tuazon, senior head of retail tenant representation at PRIME Philippines, said market fundamentals remained strong, with occupancy at major malls standing at about 90%. However, he said retail growth is increasingly being shaped by changes in consumer behavior.
“Today’s consumers are more informed, more connected, and more intentional when purchasing something,” Mr. Tuazon said at a media briefing.
He said consumers now compare prices, consult reviews and expect their purchases to offer genuine value.
PRIME Philippines identified value retail as one of the leading forces shaping the sector, with discount chains such as MR.D.I.Y., DALI Everyday Grocery and O!Save among those with the largest expansion pipelines.
The trend is also supported by the expansion of convenience-store chains such as 7-Eleven, operated by Philippine Seven Corp., and Alfamart, operated through a joint venture between the SM Group and Indonesia-based PT Sumber Alfaria Trijaya Tbk.
Based on PRIME Philippines’ estimates, MR.D.I.Y. posted the largest store-opening gain, ranging from 340 to 345 stores. DALI Everyday Grocery followed with 220 to 300 stores, while O!Save added between 220 and 260.
“This sends a clear message that retail consumers are not simply looking for lower prices. They’re looking for better value,” Mr. Tuazon said.
According to PRIME Philippines, the rapid expansion of value retailers has elevated them from complementary tenants to major foot-traffic drivers for retail properties.
F&B tenants remain a priority for property developers because of the frequency with which consumers dine out, although expansion in the segment has been tempered by higher development costs.
“A new store today requires significantly more capital than it did just a few years ago,” Mr. Tuazon said, citing elevated construction costs.
He added that successful expansion is no longer simply about “opening more stores,” but about “opening the right stores at the right price.”
Outside Metro Manila, tenant requirements in provincial hubs totaled about 47,900 sq.m. Health, wellness and beauty concepts accounted for the largest share at 37%.
Uncategorized tenants represented 20% of provincial space requirements, followed by showrooms at 17%, grocery and convenience stores at 16%, and F&B concepts at 10%.
PRIME Philippines said the retail market is becoming increasingly location-specific, requiring landlords to develop tenant mixes that reflect the shopping habits and preferences of individual communities.
The consultancy added that Gen Z and millennial consumers, who are entering their prime spending years, are supporting demand for both experiential concepts and value-oriented retail formats.
Original article: https://bworldonline.com/property/2026/08/11/769262/groceries-lead-metro-manila-retail-demand-with-37-share-prime/#google_vignette
________________________________________________________________________________________________________________
At RetailWise, we are bringing value across different brands. We aim to ensure your satisfaction by guaranteeing the success of your business from strategy to execution. Explore our strategies, resources, and expertise and find the perfect fit for your needs click here
Follow us on our social media accounts! Facebook , IG , LinkedIn