SM: Online shopping can’t replace malls

SM Prime Holdings, Inc. believes that malls, which belong to the so-called “brick-and-mortar” businesses, will continue to enjoy strong patronage from consumers despite the evolving retail landscape marked by the explosion of digital formats.

According to SM Prime Holdings president Hans T. Sy, brick and mortar businesses like shopping centers are continuously challenged by “clicks” or online formats and social media.

“As you all know, much has happened since we opened our first mall 30 years ago – the retail landscape has become more global and competitive, technology has forever changed the way we live and do things, and customer tastes have changed along with the times,” Sy said.

According to Sy, brick-and-mortar businesses like shopping malls have evolved with the times, surviving major and economic political shifts and changing the Filipino lifestyle.

In 1985, SM Founder Henry Sy Sr. opened his first shopping mall, SM City North EDSA after seeing that suburbs in the United States were being built in the outskirts of big cities, with a shopping mall as the center. Sy believed that this would also happen in the Philippines.

“When we started building SM City North EDSA in 1983, people thought my father was crazy. There was a political crisis; interest rates were as high as 45 percent, and the location of the mall was in the middle of nowhere,” said SM Prime’s CEO.

He noted that people said that “SM City would not succeed, but the mall was an instant success. And the rest, as they say is history. And that is why we are all here today after 30 years.”

Steven Tan, Senior Vice President of SM Supermalls said that today’s breed of shoppers are not the “shop and go” types. “Right now they’re very experimental. They really want the experience,” he said.

In order to cater to this new breed and to enhance the shopping experience, SM has introduced more international retail brands, more interesting food concepts as well as services geared towards enhancing wellness and providing greater convenience.

Through its retail arm, SM is exploring e-commerce to provide its shoppers with more choices and convenience. Even with the onslaught of online formats, SM continues to enhance its lifestyle malls to provide shoppers a more exciting and educational experience.

Motivational speaker Francis Kong also said that the “touch, try, and feel” culture of Filipinos will never make the brick and mortar businesses “go away.”

“Filipinos want an immersive experience. The malls provide a holistic experience. SM’s business is in the totality of the experience, that’s why you will continue to grow,” Kong said.