Friday, April 04, 2008 [ manilatimes.net ]
By Likha C. Cuevas-Miel, Reporter
THE holding company of the Philippines’ largest mall developer and operator is expanding its retail business as it plans to build more department stores, supermarkets and hypermarkets this year.
In a report to regulators, SM Investments Corp. (SMIC) said it would add nine supermarkets to its present 29, as well as two hypermarkets to the existing 11 this year. The SM group would also be increasing the number of its department stores from 31 to 34.
Last year, SMIC said it would spend about P2 billion for its retail business out of the total P25 billion the group earmarked for its capital expenditures. This is around P5 billion more than last year’s spending program, with about P15.6 billion of it going to its property development, P6 billion to its mall business, and P2.3 billion to its banking arm.
About 40 percent of the group’s financing requirements would be borrowed from foreign and local sources but the mix would depend on the market situation. Jose T. Sio, SMIC chief finance officer, told reporters last December that the company is leaning towards peso loans.
The group’s 12-month income last year was buoyed by the retail business, which comprises 84 percent of total revenues. The retail group’s net income from merchandising went up 30 percent to P3.3 billion year-on-year. Last year’s results included the full-year operations of SM Supermarkets and SM Hypermarkets that were acquired in June 2006.
At present the group operates 15 department stores in Metro Manila and 16 in the provinces. Five are stand-alone stores while the rest are based inside shopping malls. The newly opened department stores include those within SM Bacolod, SM Taytay, SM Sta. Rosa, SM Clark, SM Mall of Asia and SM Lipa.
Last year, the group opened one supermarket each in Bacolod and Taytay while in 2006 it opened supermarkets in Sta. Rosa, Lipa and Angono. Hypermarkets in Muntin-lupa and Taytay started operating last year while those in Clark, Mall of Asia, The Block SM North EDSA and Pasig were opened two years ago.
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