SM Prime Holdings Inc. (PSE: SMPH) will open SM City Laoag on May 30, marking a key milestone for the company as it launches its 88th mall in the Philippines—and its first in Ilocos Norte. Located along Airport Road, minutes from the Laoag city center and Laoag International Airport, this development not only strengthens SM Prime’s foothold in Northern Luzon but signals its long-term strategy to invest in fast-growing provincial economies.
With over 51,000 square meters of gross leasable area (GLA), SM City Laoag is one of the largest retail infrastructures in the region and opens with an impressive 90% of its space already lease-awarded. The mall is designed as a three-level complex, aiming to serve both local residents and the growing number of tourists visiting Ilocos Norte.
According to SM Prime, the mall is expected to create around 4,000 local jobs, spanning retail, operations, and support services. This makes it one of the largest single commercial job generators in the province today.
What Makes Ilocos Norte a Smart Bet for SM?
The choice of Laoag as SM Prime’s next retail hub is backed by compelling economic indicators. In 2024, Ilocos Norte posted an 8.6% economic growth rate—the highest in Region I—driven by expansion in services, accommodation, and transport sectors. These are precisely the areas where SM’s integrated retail and property development model can reinforce and multiply growth.
While major cities like Metro Manila remain saturated, provincial areas like Ilocos Norte present lower saturation, growing disposable incomes, improving infrastructure, and a tourism upswing—an ideal mix for long-term commercial viability.
What’s Inside? Shops, Eats, and Local Flavor
SM City Laoag hosts a mix of flagship SM brands and third-party tenants, including:
- SM Store
- SM Supermarket
- SM Cinema
- Ace Hardware
- Pet Express
- Miniso
- BDO
Complementing these are international and lifestyle brands such as:
- Adidas
- Columbia
- Levi’s
- Watsons
- Parfois
Dining offerings span a range of tastes and budgets, with local and global names like TGI Fridays, Vikings, Marugame Udon, Café Amian, and Milk Pot.
One standout feature is “Dap-ayan,” an open-air central park within the complex. Named after the Ilocano term for a communal gathering place, it’s designed to serve as a venue for public events and cultural activities, adding a civic dimension to the mall beyond retail.
From Shopping to Staycations?
SM Prime has confirmed it is studying the feasibility of a hotel development in Laoag, aimed at supporting the area’s tourism and MICE (Meetings, Incentives, Conferences, and Exhibitions) sectors. This would be in line with its mixed-use development model, integrating malls, hotels, and residential spaces—already proven effective in other regional hubs like Baguio and Davao.
This aligns with a broader strategy: SM Prime aims to hit 100 malls nationwide by the end of 2027, with new locations planned in La Union and Zamboanga later this year.
SM Isn’t Slowing Down Anytime Soon
In 2025, SM Prime has earmarked ₱21 billion specifically for mall expansion—both through new builds and redevelopment of existing sites. This is part of a broader ₱100 billion capital expenditure plan for the year, which also includes investments in residential, office, and hospitality projects.
The company expects to add over 316,000 square meters of new gross floor area (GFA) to its mall portfolio this year, with 124,000+ square meters of current space undergoing upgrades. These expansions are concentrated outside Metro Manila, particularly in high-potential growth corridors.
SM City Laoag exemplifies SM Prime’s shift in focus toward high-growth, underpenetrated regional markets. The company’s investment leverages Laoag’s rising economic profile and aligns with nationwide trends of decentralization and regional urbanization.
If successful, this development could serve as a model for further multi-use retail hubs in secondary cities, where infrastructure is catching up to economic momentum. It also signals a notable step in SM Prime’s broader effort to integrate commercial development with local community-building and tourism growth.
As SM continues to expand, projects like SM City Laoag reflect more than just physical growth—they indicate the company’s bet on the economic future of the Philippine provinces.