What: SM keeps on expanding in their home market.

Why it is important: the Department Store division has grown +18% on the first 9 months of 2023 compared to 2022

SM Prime, the Philippines' largest mall operator, has expanded its presence by opening two new malls in Southern Luzon, increasing its domestic shopping center count to 85, in addition to eight in China. These new malls, SM Center San Pedro and SM City Santo Tomas, are part of the company's strategy to focus on less retail-saturated provincial areas. The malls offer a mix of local and international fashion brands, department stores, supermarkets, and various retail outlets.

SM Prime is a key player in the Philippines' highly professionalized mall industry, dominated by conglomerates like Ayala Malls and Robinsons Land. These companies integrate their malls into the community fabric and emphasize environmental sustainability.

SM Prime, part of SM Investments Corporation, generates significant revenue from its mall development and leasing business. 22 of its malls are large mixed-use 'lifestyle cities', combining retail with residential, office, hotel, and convention facilities.

Beyond malls, SM's retail business, originating from a shoe shop in the 1950s, now encompasses thousands of department stores, supermarkets, and specialty stores. The retail sector has seen substantial growth, with increases in revenue and same-store sales across various segments.

The wider Philippine mall industry is experiencing similar growth, with major players like Ayala Land and Robinsons Land also reporting increased revenues. This growth contributes significantly to the country's GDP, with the Philippines expected to have one of the highest economic growth rates in ASEAN, despite high inflation rates. Malls, deeply integrated into the country's culture, are central to this economic success, with developers continually investing in this sector.

SM opens two new malls in Philippines