CEBU is emerging as a key growth market for retailers and consumer brands expanding beyond Metro Manila, as strong consumer spending and growing demand for dining, wellness and other experiences support the province’s retail sector, according to property consultancy CBRE Philippines.
“Cebu is definitely not a secondary market. It is effectively the country’s other center of gravity,” CBRE head of retail and transaction management Maam Argos said.
The consultancy described Cebu as a trillion-peso economy with a consumer base that continues to spend despite economic headwinds.
While Cebu’s economic growth has slowed and investment has contracted, retail trade was still expanding by 5.6 percent, while discretionary spending was also growing, CBRE said.
Consumer spending is supported by the large services sector, which accounts for about 75 percent of the regional economy and includes tourism, business process outsourcing, accommodation and transport.
CBRE said Cebuano consumers have a high propensity to spend, although spending tends to be frequent rather than concentrated in large, one-time purchases. Consumers are increasingly allocating money to what the consultancy described as mass-premium experiences, including dining, staycations and wellness activities.
The shift is also reflected in the types of businesses entering and expanding in Cebu. CBRE said eight of the 10 brands highlighted in its recent retail review were from the food and beverage sector, pointing to the growing importance of experience-driven consumption in the provincial market.
Footwear brand Sledgers is among consumer brands seeking to broaden its reach in Cebu, particularly among younger shoppers, while retaining its established customer base aged 30 and above.
“Cebu is very different from Manila,” Sledgers marketing manager Peter Calvin Perez said in a separate interview. He cited the market’s strong connection to style and fashion.
The company is broadening its men’s footwear range through its Spring-Summer 2026 “Everyday Man” collection, which is aimed at consumers looking for shoes that can move between work, leisure and social activities.
Perez said Sledgers had traditionally focused on customers aged 30 and above but is now seeking to reach both younger and older consumers. Older customers continue to favor driving shoes, while younger shoppers are showing interest in penny loafers and derby shoes.
The collection includes the Parker, Marcellin and Lucien styles. The Marcellin and Lucien are available in Cebu, while the Parker is being sold through the company’s website ahead of its local launch, Perez said.
The company has also adjusted prices for some footwear to make its products accessible to a broader market while
maintaining the same leather quality across its range, he said.
The expansion illustrates the broader shift in consumer preferences that retailers are seeking to capture as provincial markets gain importance.
CBRE said retail growth in the Philippines is expected to increasingly come from the provinces, with Cebu providing a strong example of the opportunity outside the capital.
The province is already exposed to the premium consumer segment, with ultra-luxury developments and growing consumer spending capacity, the consultancy said.
For retailers and developers, the challenge will be to provide spaces suited to changing consumer and brand preferences, particularly as international retailers increasingly look to provincial markets for expansion.
The opportunity, CBRE said, lies not only in adding retail space but in creating properties that can capture demand for food, leisure and other experiences. / KOC