Updated December 17, 2008 12:00 AM
[ philstar.com ]
SM Investments Corp. (SMIC), the listed investment holding firm of the Sy family, said its retail network has expanded to 98 this year from 87 last year.
SMIC made this announcement following the opening of a new SM Supermarket in Cubao, Quezon City yesterday.
The 98 stores comprise 33 SM department stores, 24 SM supermarkets, 13 SaveMore branches, 13 SM hypermarkets and 15 Makro outlets.
For this year, the company launched 11 new stores consisting of two SM department stores, two SM supermarkets, two SM hypermarkets and five SaveMore branches. These retail outlets boosted the selling space of deparment stores to 518,236 square meters and the food retail group by 42 percent to 287,516 square meters.
SaveMore branches are typically stand-alone stores located outside SM shopping malls mainly targeting high-density residential areas. Late last year, SM also increased its stake to own controlling interest in wholesaler Pilipinas Makro Inc. which has 15 Makro stores in Metro Manila.
“SM retail will continue to increase its presence nationwide. This reiterates SM’s sustained commitment to the Philippine economy and its potential to deliver long-term growth and expansion amid short-term challenges posed by the global crisis,” SMIC president Mr. Harley Sy said.
For next year, the group plans to open three new shopping malls to boost its mall network to 36 by end-209 from 33 this year. Total gross floor area is likewise expected to grow to 4.5 million square meters from the projected 4.3 million square meters end this year.
Shopping mall subsidiary and main revenue contributor SM Prime is also pursuing its expansion in China with plans to put up one new store a year. Its malls in China are located in highly populated areas in southern and western China, namely, Xiamen, Jinjiang and Chengdu.
Plans are now underway for the establishment of a mall in Chongquing with two more planned in 2010 and 2011 – Suzhou and Zibo in Guangdong province.
In the nine months ending September this year, SM Prime posted a net income of P4.7 billion, up nine percent from the previous level on the back of new store openings. Revenues expanded 10 percent to P12.8 billion while gross earnings rose 10 percent to P8.9 billion. — Zinnia B. dela Peña