British retailer Marks & Spencer secured a new franchise partner to maintain its Philippines presence, bucking the broader trend of international retailers retreating from Southeast Asian markets amid shifting consumer patterns and e-commerce pressure.
The company announced this week that Suyen Corporation will take over M&S franchise operations in the Philippines, replacing the previous partnership that was set to expire. Financial terms were not disclosed, but the deal ensures M&S stores will continue operating across Metro Manila and major provincial cities.
The partnership renewal signals confidence in the Philippines' middle-class growth trajectory, even as other international retailers exit the market. Sweden's H&M, Spain's Zara, and Japan's Uniqlo have all scaled back Philippine expansion plans since 2023, citing slower-than-expected sales and competition from local fast-fashion brands.
M&S operates approximately 12 stores across the Philippines, concentrated in upscale malls like Greenbelt, Shangri-La Plaza, and Ayala Center Cebu. The retailer positions itself at the premium end of the market, selling imported British food products alongside clothing, home goods, and accessories.
That positioning targets the Philippines' expanding affluent segment. The country's middle- and upper-income households grew 14 percent between 2020 and 2025, according to the Philippine Statistics Authority, reaching approximately 5.2 million households with monthly incomes exceeding PHP 100,000.
Overseas Filipino worker remittances, which totaled $36.2 billion in 2025, fuel much of that consumer spending power. Filipino families receiving regular dollar remittances from relatives working abroad constitute M&S's core demographic—households with discretionary income for imported British goods at premium prices.
The Philippines received the third-highest remittance inflows globally in 2025, behind only India and Mexico, according to the World Bank. Those transfers support consumption patterns that exceed what domestic income levels alone would sustain, creating opportunities for premium retailers despite the country's USD $3,950 per capita GDP.
Yet the retail environment remains challenging. E-commerce platforms like Shopee and Lazada have captured market share, particularly among younger consumers comfortable purchasing clothing online. Social media commerce through Facebook and Instagram further fragments traditional retail, allowing small vendors to reach customers without physical stores.
Local competitors also adapt faster to Filipino preferences. Bench, SM's house brands, and other domestic retailers offer styles tailored to tropical climates, Filipino body types, and local fashion sensibilities at lower price points than international brands. They understand the market in ways foreign retailers struggle to match.
M&S's food business provides differentiation. The company imports British products—biscuits, teas, chocolates, prepared meals—that appeal to Filipino Anglophilia and nostalgia among returnee overseas workers familiar with M&S from time spent in the UK. Those products carry higher margins than clothing and face less direct competition.
The franchise model limits M&S's risk. Suyen Corporation bears the capital costs, operational expenses, and market risk while paying M&S royalties and sourcing products through the parent company. If Philippine operations underperform, M&S can exit without liquidating owned assets.
That model has allowed M&S to maintain presence across multiple Southeast Asian markets despite broader retail struggles. The company operates franchise stores in Indonesia, Malaysia, Singapore, and Thailand, adapting product mix and pricing to local conditions.
Singapore and Malaysia represent M&S's strongest Southeast Asian markets, benefiting from large expatriate populations and historical British ties that create brand affinity. Indonesia and the Philippines pose greater challenges, with lower per capita incomes and less familiarity with British retail culture.
Suyen Corporation's background remains relatively unknown in Philippine retail. The company's existing portfolio and experience were not detailed in M&S's announcement, raising questions about whether the new partner brings relevant capabilities or represents a second-tier choice after more established retailers declined the opportunity.
The broader pattern shows international retailers reassessing Southeast Asian expansion. The region's 700 million consumers and rising incomes attract attention, but execution proves difficult. Supply chains optimized for temperate climates struggle with tropical humidity. Western sizing doesn't fit Asian body types. Consumer preferences vary dramatically across countries.
Successful regional retailers like Uniqlo and Zara spent years adapting product development, supply chains, and store formats to Southeast Asian conditions. Even so, they face intense competition from local fast-fashion brands that move faster and price lower.
For the Philippines, M&S's commitment provides a modest vote of confidence in the market's premium segment. The country's consumer economy has proven resilient, sustained by remittances, business process outsourcing sector growth, and expanding middle class. Whether that's enough to support British retail at premium prices remains the question Suyen Corporation is betting it can answer.
Ten countries, 700 million people, one region—and M&S choosing to stay in the Philippines while others retreat.
