SM’s regional shift next logical step
Having achieved a dominant position in key central cities, SM Investments Corp., or SMIC, is now setting its sights on the regions as the next frontier for growth.
SMIC, the parent company of SM Group, said on Friday that it aims to replicate its success in regional areas by leveraging its strong brand, extensive network, and deep understanding of the local market.
“There is a lot of potential, especially in Luzon outside of the NCR as well as in Visayas and Mindanao where there is still a need to access modern trade. And it’s not just for our core businesses of retail, banking, and property but also our portfolio companies,” SM Investments president and chief executive officer Frederic DyBuncio said.
“We view the regions as a bright spot for growth with the diverse products and services that we offer to consumers. We believe that there are so many more opportunities for us to be able to provide better services to the Filipino people in the regions,” he added.
Logistics boost
Among its portfolio companies, SM is beefing up investments in logistics through 2GO Group and Airspeed to help spur more economic activity in the provinces.
2GO Travel serves Visayas and Mindanao, connecting key cities in the region. Interports operate from Cebu to destinations including Cagayan De Oro, Butuan and Ozamis.
2GO’s efficient logistical hubs manage cold chain requirements for food shipments from VisMin to Manila and the rest of Luzon.
Airspeed is positioning its Cebu warehouse as a central hub for future growth, planning to establish new hubs in key VisMin cities and expand its network by opening more kiosks and collaborating with service providers.
Goldilocks, part of SM’s portfolio investments, has expanded into the provinces, with 40 percent of its new stores located in Visayas and Mindanao, targeting the growing consumer base in these regions.
Core business expansion
SM is expanding its core business in key cities that show double-digit economic growth.
SM Investments opened 419 new retail stores in 2023, with about 89 percent of these located in provincial areas, aiming to contribute to local economies and changing lifestyles.
SM Prime Holdings, Inc. opened three new malls in 2023, namely SM City Bataan, SM Center San
Pedro in Laguna, and SM City Sto. Tomas in Batangas, focusing on community growth.
SM Development Corp. is constructing more residential communities in provinces outside Metro Manila, including Pampanga, Bulacan, Rizal, Cavite, Laguna, Cagayan de Oro, Davao, Iloilo, and Bacolod.
‘There is a lot of potential, especially in Luzon outside of the NCR as well as in Visayas and Mindanao where there is still a need to access modern trade.’
Provincial banking
BDO Unibank has a significant presence in the regions, operating 1,101 branches in Luzon, Visayas, and Mindanao out of a total of 1,720 branches as of the end of 2023.
BDO’s community bank, BDO Network Bank, continues to expand its reach in remote communities through branch expansion in the provinces.
China Banking Corp. also has a wide footprint in the provinces, with 300 branches outside Metro Manila out of its total of 648 branches.
China Bank Savings, China Banking Corporation’s thrift bank subsidiary, has a provincial network of 94 branch sites and lending centers, and it continues to expand its physical presence in Visayas and Mindanao to provide both traditional and digital banking services to customers.