SMIC to expand its retail, comm’l portfolio this year

MANILA, Philippines - Conglomerate SM Investments Corp. (SMIC) of Philippines’ richest man Henry Sy Sr. is expanding its retail and commercial portfolio this year to capitalize on the strength of the consumer sector.

SM Retail Inc. and SM Development Corp. (SMDC) have charted plans to increase their recurring income portfolio amid intensifying competition, executives said yesterday.

SM Retail executive vice-president Robert Kwee said the company is putting up at least 20 Savemore and Hypermarket stores outside Manila this year to the tune of a P2-billion investment.

Kwee said the department and food stores operator of SMIC opened last week a Hypermart store, with two more scheduled to start operations this year.

To increase its competitiveness, SM Retail is currently studying the viability venturing into the convenience store format through a foreign brand, Kwee said.

“We have to be ready (for competition). We can’t fall asleep,” Kwee said, adding that acquisition is also in the pipeline.

As of end-2013, SM Retail had a total of 241 stores: 48 SM Department stores, and 193 food stores (39 SM Supermarkets, 39 SM Hypermarkets, 93 SaveMore stores, and 22 Walter Mart supermarkets).

For its part, SMDC is putting up three retail podiums in three residential projects in the metro.

“It depends on the size of the development. If it’s like the size of Sun, Jazz, Light Residences, yes we will have the retail component,” said SM Prime Holdings Inc. executive vice-president and SMDC president Jeffrey Lim.

“Every SMDC residences will have a retail component,” Lim said.

Last week, integrated property firm SM Prime opened Sun Mall, the third retail podium attached to an SMDC residential tower.

SM Prime allotted P70.57 billion for its capital expenditures this year, of which 55 percent is for the shopping malls, 28 percent for the residential segment, and the balance for offices, hotels and convention centers.

In May, mall and banking giant SM Group announced the merger of its real estate businesses, creating the most valuable property firm in Southeast Asia. It merged upscale Tagaytay Highlands developer Highlands Prime Inc., condominium builder SMDC, private firm SM Land Inc. and mall developer SM Prime.