The SM Store: A template for the retail industry

The SM Modern Store.

MANILA, Philippines - The SM Department Store of retail pioneer Henry Sy, now called The SM Store, is an unforgettable part of the shopping journey of generations of Filipinos for over four decades.  It has revolutionized fashion merchandise which even to the new generation has been a major breakthrough.

From its first store in the 1970s, SM has expanded to a network of 53 stores today. As a market leader, the SM Store has come a very long way from Calle Echague where it became a full blown department store in 1972.

 “The world is changing so fast. What drives retail is that we always have to move forward,” says SM vice chair Teresita Sy-Coson, Henry’s eldest child who helped her father build the retail business when it was then known as Shoemart. The longevity of Sy’s retail business is founded on a culture of innovation and an understanding that sustained growth means staying ahead in a rapidly changing market.

 The SM Store was one of the pioneers in the new urban centers in Makati and Cubao and later on, in key cities around the country as a major anchor in SM Supermalls. It was one of the first stores to showcase the clothes of Filipino fashion designers, playing a big role in spearheading local ready to wear fashion. It is also redefining the shopping experience today with new brands and modern concepts to bring world-class shopping closer to Filipinos.

 “Tatang (as the Sy patriarch is fondly called) was really a trendsetter in many ways,” SM Store president Chelo Monasterio said, as Sy always wanted to bring the ideas he had learned and the merchandise he had seen from his travels in other countries to the Philippines.

 Sy innovated on many firsts in product mix and systems of operation, including a unique way of delivering shoes to waiting customers using what technology was there and an inventive combination of codes and body language.

Today that system has been replaced by a process that uses more sophisticated technology, which is a long way from the callers that shout out orders like brokers on Wall Street and shoe boxes falling from a hole in the ceiling.

Store design also transformed in a dramatic way from the boxy interior and standard display modules to the next generation of stores using the “less is more” approach, putting emphasis on lighting and art instead of the previous colorful graphics, creative ceiling and wall treatments.

Retail stores we know today also started as departments in The SM Store. The former Home Department became HomeWorld and now, Our Home. The Toy Department became Toy Kingdom, while Infants and Accessories became Baby Co.

A visit to the newly renovated SM Makati shows how much SM’s retailscape has changed over the years. Global retailers H&M, Uniqlo and Forever 21, all major players in the fashion industry, welcome customers on the ground floor, the same with Spanish brand Uno de 50, American home retailer Crate & Barrel , beauty brands like Dior, Clinique, MAC, Kiehl, and Spanish fashion retailer Sfera, among others.

While styles have come and gone, even for the iconic sales ladies of SM donning their crisp blue and white uniforms, the passion to serve remained the priority. “Tatang was very particular with the kind of service we all delivered. He made sure we always took care of the people,” Monasterio said.

Offering services beyond shopping, it pioneered the business center concept where customers can avail of remittance, bills payment and government services, as well as show tickets. SM’s Rewards Program through the SM Advantage and Prestige Cards has millions of members.

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