• SM targets more retail stores
SM Retail Inc., the retail arm of conglomerate SM Investments Corp. (SMIC), is targeting a nationwide presence of 3,000 stores across its various brands in the next five years, a company official said.
In a chance interview, SM Retail director Jorge Mendiola told reporters that the company currently has over 2,000 stores all over the country, including department stores and retail affiliates.
“We’re in that mode right now for expansion,” Mendiola said.
“Hopefully soon, probably in the next five years or so,” he said when asked when the company expects to hit the 3,000-store mark.”We’re here for the long haul, hopefully the faster, the better. Of course, we need to know if the location is right for the format. We want to expand. It took us 60 years to get to 2,000 stores.”
In 2016, the SM Group merged its specialty stores into SM Retail in a bid to create value and boost earnings given the strong competitive position of the specialty stores and their synergies with SM malls.
Among the brands that were merged with SM Retail’s food and department stores are leading household brands Ace Hardware, Watsons, Toy Kingdom, SM Appliances, Our Home, Baby Company, Kultura, Sports Central, Pet Express and other specialty retailers.
Asked if the company is looking at acquiring more brands, Mendiola said they are always open to acquisition opportunities.
"We’re always open to anything. If something comes by, then we take a look at it and if we think that it will really help us then we will engage,” Mendiola said.
He said the company is also open to acquiring foreign brands.
“We would like to take in foreign brands, the thing is if there is a willingness of these brands to come into the Philippines like for example Uniqlo, when we partnered with them they’re very optimistic about the Philippine market and I think they’re fairly successful here,” Mendiola said.
The company official identified the growing spending power of Filipinos as one factor attracting foreign brands to come into the country.