All for the people

SM’S RETAIL BUSINESS, managed by SM Retail, Inc., has come a long way since its beginning as a shoe store in downtown Manila, growing into a group of specialty and food stores that cut across different sectors of the Philippine society.

“We just recently completed the integration, the merging of the retail group to become one of the retail leaders not only in the Philippines but also in Southeast Asia,” Jose T. Sio, SM Investments Corp.’s (SMIC) chairman of the board, told in a recent interview.

Based on SMIC’s this merger in July last year resulted in earnings and margin accretion. SM Retail posted P276.5 billion in gross revenues, an 8.4% growth from the previous year. It sustained growth in gross revenues surging by 8.4% to P276.5 billion in 2016. It also reported P10.6-billion net income, a 7.4% growth from the previous year’s net income of P9.9 billion.

“The merger also expanded SM Retail’s nationwide footprint to 2,303 outlets at the end of 2016. This comprises 1,749 specialty retail outlets, 57 department stores (The SM STOREs), 48 SM Supermarkets, 44 SM Hypermarkets and 156 Savemore stores (collectively SM Markets), as well as 39 WalterMart and 210 Alfamart stores,” the report said.

Last year, 80% of SM Retail’s store expansion occurred outside of Metro Manila to meet the needs of different communities nationwide.

SM’s food retail group, led by SM Markets, expanded in recognition of the high traffic in rural and urban areas. Most of the 33 new stores that opened in 2016 were focused on communities outside National Capital Region. This expansion allowed the company to maintain its lead amid the strong competition in the food retail industry.

For the shopping segment, The SM STORE opened four new stores namely SM San Jose Del Monte in Bulacan, SM Trece Martires and SM Molino in Cavite and SM East Ortigas in Pasig. As of end 2016, total gross selling areas of all 57 SM STOREs is at 745,649 square meters.

The SM STOREs have also been re-imagined. They now feature a larger assortment of products and an improved store ambiance. The modernized stores feature eco-friendly LED lighting and ambient scents to bring full sensory experience to its customers.

They also follow global fashion trends and offer brands at different price points to provide every Filipino a chance to upgrade their style. In-store services such as styling, makeover and personal shopper are also expanded.

For those who prefer shopping online, they can now digitally shop at The SM STOREs through Lazada Philippines.

As a proof of SM’s growing number of patrons through the decades, the SM STORE recorded 8.2 million active members of the its loyalty program in 2016.

Aside from shopping, The SM STOREs also offer services such as ATM banking, bills payment, ticketing, remittance and money exchange and customer lounges for Prestige cardholders.

The SM Retail continued to see growth in the first quarter of 2017. The company’s total sales went up to P61.4 billion, a 7% increase from the same period last year. It also recorded a net income of P2.3 billion.

As of end March, there are a total of 2,194 stores that included 57 SM STOREs, 1,584 specialty retail stores, 48 SM Supermarkets, 44 SM Hypermarkets, 165 Savemore, 39 WalterMart and 257 Alfamart stores. This first quarter expansion was focused on the neighborhood store format Savemore.

Revenues from the specialty retail stores, including Ace Hardware and SM Appliance Center, reached P14.2 billion, up by 7% from the same period last year. —