By Neil Jerome C. Morales (The
Philippine Star) | Updated August 8, 2014 - 12:00am
MANILA, Philippines - Mall, banking
and retail conglomerate SM Investments Corp. (SMIC) has started its foray into
the local convenience store segment, a sector with heating competition given
the rapid expansion of top companies and global brands.
The listed holding firm is putting up
as much as four new Alfamart stores in the southern part of Metro Manila this
year on top of the existing three branches as part of efforts to test the
market, a top executive said yesterday.
“Alfamart still on an experimental
basis...We have three stores so far: Trece Martires, Dasmariñas and Las Piñas,”
SM Supermarkets president Joey Mendoza said in a briefing.
“There are three to four more in the
pipeline,” he said.
Last month, SMIC partnered with
Indonesian convenience store giant Alfamart to open the first store in Trece
Martires in Cavite.
“In those particular areas in the
south, you have high population density, high traffic, and a combination of
urban and rural portfolio,” Mendoza said, adding that the retail group is
building up its confidence in the convenience store business.
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Mendoza said the SM Group, which is
used to operating big format stores, is learning a lot from its Indonesian
partner.
As of end-June, SM Retail has opened
eight new stores this year, bringing the total to 249 stores composed of 49 SM
Stores, 40 SM Supermarkets, 41 SM Hypermarkets, 97 Savemore and 22 WalterMart
branches.
The local Alfamart stores occupy
around 150 square meters of floor space, offering basic groceries, fresh
chicken, medicines and food-to-go options round-the-clock.
Tim Daniels, investor relations chief
of SMIC, said there are roughly 2,500 convenience stores in the entire
Philippines, which pales in comparison with Indonesia’s 15,000 outlets.
Established in 1989 by Djoko Susanto
and family as a consumer goods trader and distributor, Alfamart entered the
retail sector at the turn of the millennium. In 2002, the company acquired 141
Alfa Minimart stores. It is now one of Indonesia’s leading retailers, serving
more than 2.5 million customers daily in 7,000 stores.
The local convenience store segment is
on a rapid expansion mode due to increasing disposable income of consumers.
Japanese convenience store giant
Lawson Inc. will enter the Philippine market through Lucio Co’s Puregold Price
Club Inc. FamilyMart Co. Ltd. teamed up with the Ayala and Rustan’s Group while
the Gokongwei family is expanding its Ministop store network.
Market leader Philippine Seven Corp.,
the local licensee of the 7-Eleven convenience store chain, is banking on the robust
retail market and franchising to maintain its position as the country’s largest
convenience store chain and double its stores to 2,000 in the next three to
four years.
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