What: SM is enjoying sustained growth in all its operations, from mall to department store, retail and supermarket ones.

Why it is important: The Philippines are often overlooked when it comes to retail due to their mid-segment positioning however many opportunities lie in the country.

SM Investments, a prominent entity in the Philippines, encapsulates business operations spanning retail, property, and banking, with its property segment, SM Prime, standing out as the country’s premier mall operator boasting over 20,000 tenants. Recent reports highlight a robust 21.2% revenue growth in 2023, fueled by increased sales, higher occupancy rates, and the inauguration of new malls like SM Center San Pedro and SM City Santo Tomas. These developments not only exemplify the company's expansion but also its innovative approach in creating 'lifestyle cities,' comprehensive developments that blend residential, office, and retail spaces, often revitalized from old military bases.

The retail arm of SM Investments further complements this growth, operating approximately 3850 stores including supermarkets and specialty stores, with a noteworthy sales increase of over 6% in department stores and 3.9% in the food sector. This segment highlights the gradual shift from traditional to modern retail formats, with only about 30% of food currently sold in modern retail settings, indicating significant growth potential.

Regionally, SM Investments aligns with trends across ASEAN, focusing expansion efforts outside metropolitan Manila to capitalize on rising incomes and government decentralization policies. This strategy is mirrored by competitors like Robinsons Land and Ayala Malls, who are also experiencing significant growth in both tenant sales and overall revenue.

In the Philippines, SM sees a boom in its mall operations