EXCLUSIVE: Spinneys replaces Merkado Supermarket as Ayala Corp. pivots retail strategy

The supermarket shift comes as no surprise with Ayala Land and other real estate giants doubling down on leasing.

Editor’s Note: radar Business first broke the story in late February, but Ayala Land and Puregold have yet to respond to requests for comment.

The recently shut-down Merkado Supermarket chain will be replaced by Spinneys, an international grocery brand franchised in the Philippines by Ayala Corp., a highly reliable source told radar Business.

Ayala Corp. formed a strategic partnership with the United Arab Emirates-based chain in September 2025 through its retail arm ACX Holdings. Spinneys is owned by the Al Seer Group, a leading consumer and logistics conglomerate in the Gulf region.

Two branches are set to open in late 2026—one in San Antonio Plaza Arcade in Makati City and another in UP Town Center in Quezon City, taking over a Merkado branch in the same mall. Ayala Corp. plans to open 12 Spinneys stores in Metro Manila over the next four years.

The sudden end of the Merkado-Puregold era

Merkado Supermarket opened in 2015, operating two branches in Quezon City and one in Makati City. All stores closed their doors on February 16.

The chain was jointly managed by Ayala Land and Puregold through AyaGold Retailers, Inc., with an initial investment of ₱2 billion. The companies had planned to expand across Ayala malls and even establish standalone locations—plans that ultimately did not materialize.

Neither company has commented on the reason for Merkado’s closure after more than a decade of operations. The status of AyaGold Retailers remains unclear.

Spinneys Philippines will target the same high- and middle-income market that Merkado served, offering imported goods and premium private-label products to Filipino consumers.

Ayala Land’s high-stakes leasing strategy

The sale comes at a volatile time for the property sector, as rising operating costs quickly eat into profits while turnover rates for residential spaces remain lower.

But most real estate companies—including Ayala Land—are reporting stronger gains in leasing and hospitality.

Ayala Land reported ₱48.7 billion in revenue from its shopping center and office leasing segments in 2025, a 7% increase from the previous year.

The company said its retail spaces saw improved occupancy and higher merchant sales, driven by consumers seeking out more in-person shopping and dining experiences.

The real estate giant is looking to sustain its momentum going into 2026, allocating up to ₱80 billion to expand its leasing portfolio, upgrade flagship malls, and boost hospitality brands.

The profitability play

Franchising an established international brand may prove to be more profitable than retaining an in-house grocery chain, minimizing supply chain and inventory costs. The move also supports the company’s current strategy of strengthening leasing and retail while offering a distinct global retail experience for Filipino shoppers.

 

 

Ayala Corp. formed a strategic partnership with the United Arab Emirates-based chain in September 2025 through its retail arm ACX Holdings.

 

 

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