Tag: SM Group

  • SM Group Launches Thrilling Expansion of Beauty and Wellness Network with 1,000+ Brands

    SM Group Launches Thrilling Expansion of Beauty and Wellness Network with 1,000+ Brands

    The Philippines’ SM Group is quickly transforming its beauty and wellness portfolio in response to a surging demand from consumers across the nation. With an ambitious aim to be at the forefront of this booming sector, SM Beauty has introduced over 1,000 beauty brands across its 77 locations, showcasing esteemed labels like YSL, Lancôme, and Calvin Klein.

    Beauty Hubs for Experiential Retail

    In a bid to elevate the shopping experience, SM Beauty has unveiled dedicated beauty hubs in select stores. Here, customers can indulge not just in retail therapy, but also in services such as hair coloring and makeovers, all guided by an expanding team of professional beauty advisers. It’s the kind of pampering that might make even your morning coffee jealous.

    Wellness Economy on the Rise

    The Global Wellness Institute has forecasted that the global wellness economy will soar to nearly $9 trillion by 2028, highlighting a paradigm shift towards health and self-care. In the Philippines, this trend is blossoming; in 2023, the nation ranked 13th out of 218 economies worldwide in the personal care and beauty sector. Much of this momentum is fueled by a youthful, wellness-oriented population eager to invest in self-improvement.

    Holistic Growth with Watsons

    Another key player in SM Group’s expansion is Watsons Philippines, which is bolstering its offerings with exclusive skincare lines and health services, while incorporating sustainability-focused innovations into its stores. This dual approach not only nods to environmental consciousness but also resonates with today’s socially aware consumers.

    Commitment to Filipino Consumers

    Looking ahead, SM Group is determined to broaden access to beauty and wellness products, creating a diverse array of choices and enriching experiences designed specifically for Filipino consumers. With its strategic investments and a finger firmly on the pulse of local trends, the company is set to become a titan in the beauty and wellness arena.

    Questions & Answers

    How is SM Beauty adapting to consumer demands in the Philippines?
    SM Beauty is expanding its portfolio by offering over 1,000 beauty brands at its locations and launching dedicated beauty hubs to provide personalized services like hair coloring and makeovers.

    What does the future hold for the global wellness economy?
    The Global Wellness Institute projects that the global wellness economy is expected to reach nearly $9 trillion by 2028, indicating significant growth in health and wellness sectors globally.

    What role does Watsons play in SM Group’s strategy?
    Watsons Philippines is enhancing its presence by launching exclusive skincare lines and health services, while also focusing on sustainability to attract eco-conscious consumers.

  • SM Group nearly ready to take over Harrison Plaza in Manila

    SM Group nearly ready to take over Harrison Plaza in Manila

    SM Group will assume ownership of Manila’s Harrison Plaza complex from the Martel family by next year, most likely refurbishing the seven-hectare property into a new mixed-used development.

    “The plans are being reviewed,” said a source from the firm. “It might be mixed use, but definitely there will be a mall.”

    “The area is a prime location and can be very well expanded into another sprawling mall with residential developments around it,” said SM Investments Corp chairman Jose Sio last year upon announcing the group’s plans to develop and manage the complex.

    Harrison Plaza has been a highly recognisable fixture in the city since its construction in 1976, and is often referred to as the Philippines’ first modern shopping centre. The complex has, however, fallen into decline in the years since its renovation in the early 1980s. It currently has around 200 shops.

    SM will buy out the plaza’s current owners from its contract with local government, which expires next year.

  • SM Group introduces first Customer Service Robot

    SM Group introduces first Customer Service Robot

    SM Group has employed its first in-mall customer service robot, at SM Megamall.

    Named Sam, the AI humanoid robot is designed to help customers with directions and information about the latest mall deals, promotions and events.

    “Innovation is what SM strives for in providing better customer service to all and we are proud to introduce our latest innovation yet,” said Steven Tan, SM Supermalls COO.

    “Sam is easy to approach and has answers to almost everything SM mall related, making shopping more seamless and fun for our customers.”

    Equipped with an advanced face-recognition technology, Sam can also make personalised greetings to customers at Mega Atrium, Mega Fashion Hall and Bank Drive.

    Customers can also chat with Sam through the SM Supermalls Facebook page 24/7 to get information on branch locations, mall schedules and promotions.

    Created in partnership with the Cal-Comp Technology, Sam will be upgraded with more functions to provide a more fun and engaging shopping experience.

  • Alfamart to add 200 PHL stores

    Alfamart to add 200 PHL stores

    Mini-mart chain Alfamart will open 200 new stores in the Philippines next year, according to a Fitch Ratings report. It said Alfamart Philippines stores already has 400 stores in the country, of which 180 were opened this year in partnership with local operator and majority stakeholder SM Group. The 200 new stores will take its total network to 600 locations in the Philippines by the end of next year.

    “Alfamart’s investment risk for its Philippine expansion is mitigated by the strong presence of SM Group in the country … Fitch expects Alfamart to have access to SM Group’s large business network and tap its widely known brand”.

    SM Retail operates 1729 stores nationwide. Alfamart’s Indonesian parent has a 35 per cent stake in the Alfamart Philippines business.

    According to the report, “Both Indonesia and the Philippines are consumer-driven markets with young populations and expanding middle classes. Both economies have similar income levels of GDP per capita of US$3000-$4000. Consumers in both markets also prefer to buy small amounts of bundled products rather than filling grocery carts”.

    It described the mini-mart sector in the Philippines “as untapped and having limited competition … the existing players mostly operate convenience stores that carry more limited products. Alfamart’s stores offer additional products, such as fresh and frozen food, personal care and small household appliances, giving the company some competitive advantage in grabbing market share.

    “Alfamart chose to expand in the Philippines as it believes it has more potential than other Southeast Asian markets, such as Thailand and Vietnam.”

  • Bata Philippines opens at SM Megamall

    Bata Philippines opens at SM Megamall

    Partnering with the SM Group, Bata Philippines has opened its first store at SM Megamall in Manila.

    Bata PH 2

    “We never hesitated,” says Thomas Archer Bata, who attended the launch, referring to the brand’s linking up with the Sy family, which grew a shoe outlet into supermarket development conglomerate SM Group. “Also, we have had a friendship with the SM Group and the Sy family for some time.”

    Bata Shoe Co originated in Zlin, in what is now the Czech Republic, in 1894. It was founded by Tomás Bat’a, whose grandson, Thomas George, is on the management board along with his sisters Christine, Monica and Rosemarie. Thomas Archer, the chief marketing officer, is a fourth-generation cousin.

    Bata 1

    Bata 2

    Bata 3

    Bata has 5000 retail outlets in 70 countries, with a strong presence in India and a factory in Thailand since the 1970s. The company would have entered the Philippines earlier, but there were legal complications related to its trademark, says Thomas Bata. “It took many, many years to resolve. Fortunately, with the help of SM, we managed to resolve it.”

    He says the brand is going to “tread cautiously” in the Philippines with plans to open between eight and 15 stores in SM malls in Metro Manila.

    He says the company follows a “responsible capitalism moral testament” formulated by its founder: it should not be treated as a source of private wealth but, rather, as a public trust, a means of improving living standards within the community and providing customers with good value for their money.

    “We are very environment-friendly. Our factories are audited on a yearly basis for their sustainability,” says Bata. “Our founder more than 100 years ago believed in sustainability, in producing as little waste as possible, and that is still the case. We always use environment-friendly materials and suppliers.”

    Meanwhile, Bata says the company is talking to potential partners in the Philippines to work on some collaborative projects, and is planning with SM how to roll out a rural education program for young girls.

  • Henry Sy, Lazada team up for Philippine online retail business

    Henry Sy, Lazada team up for Philippine online retail business

    Billionaire Henry Sy, owner of the largest Philippine builder and retailer, has partnered with an online retailer backed by Germany’s Rocket Internet SE to target the rising number of consumers in the Southeast Asian nation who shop using the Internet.

    SM Investments Corp, Sy’s holding company, has reached an agreement to use the platform of the Philippine unit of Rocket Internet’s Lazada to sell online merchandise from toys to clothes, Teresita Sy-Coson, a daughter of the billionaire owner and vice chairwoman of the company, said in an interview. SM will initially sell light-to-carry non-food items through Lazada that eventually could include home furnishings and appliances, she said.

    “This strategic alliance with Lazada will further enhance our online store,” Sy-Coson said. “It’s a very good match: Lazada has its expertise and we also have our own expertise.”

    SM Investments, operator of the country’s biggest chain of retail stores and owner of the nation’s largest shopping mall builder, faces intensifying competition as rivals from Robinsons Retail Holdings to Puregold Price Club expand their network. Internet access and the use of smartphones have also been rising, encouraging EBay Inc, Alibaba Group Holdings and Amazon.com to tap local online shoppers.

    More Filipinos are accessing the Internet, including on mobile devices. About 40% of the Philippine’s population of more than 100mn were Internet users in 2012, up from 5.2% in 2004, according to the World Bank. The Philippines had about 118mn mobile phone subscribers at end-2015.

    SM Investments’ alliance with Lazada comes two years after Sy-Coson said in a Bloomberg interview in February 2014 that the group has been testing e-commerce websites and targets a full-scale online operation by 2016. The SM Group currently has websites that sell toys and home appliances as well as vouchers that give customers as much as 50% discount in purchasing selected merchandise from its department stores and supermarkets.

    The Philippine e-commerce market is forecast to grow at a compounded annual growth rate of 101.4% from 2013 through to 2018, according to a 2014 report by Ken Research. The online retail market, a component of e-commerce, is projected to rise 189.2% over the same period, it said.

    Lazada, which began its Philippine operations in 2012, led Internet retailing in the country in 2015 with a 20% market share as it met rising Filipino interests for gadgets and electronic appliances from smartphones, tablets to home theatre systems at prices that were a “huge” discount, according to a Euromonitor International January 2016 report.

    Lazada.com.ph, which has 7,000 merchants, is the country’s sixth most popular website and ranks 14th globally among online merchant websites, according to Inanc Balci, chief executive at Lazada’s Philippine operations. He said the Filipino shopping pattern has evolved with 60% of their customers buying goods through mobile Internet.

    Lazada Group is a privately owned e-commerce company founded in 2011 by Rocket Internet with the goal of building Southeast Asia’s Amazon.com. Aside from the Philippines, it operates sites in Indonesia, Malaysia, Singapore, Thailand and Vietnam. Singapore’s Temasek Holdings is among its large shareholders, according to Rocket Internet’s website.

    SM Investments’ retail operations, which include department stores, grocers, supermarkets and convenience stores, posted a 17% growth in profit to 6.8bn pesos last year on a 7% increase in sales. SM Prime Holdings, its shopping mall venture, had a 14% increase in recurring profit to 20.9bn pesos.

    “The retail business is evolving,” Sy-Coson said. “It is important for a retailer to go online and it’s the right move to go with Lazada.”

  • SM Investments Corporation wins two Anvil Awards for its Annual and ESG Reports

    SM Investments Corporation wins two Anvil Awards for its Annual and ESG Reports

    SM’s first 2014 ESG report with the theme, “Working Together for a Sustainable Future”, earned a Gold Anvil Award for manifesting the company’s commitment to sustainability practices and for providing accurate disclosure and integrated reporting of its ESG policies. It is a group-wide report highlighting good governance, social development and environmental consciousness of SM companies such as SM Retail, SM Prime Holdings, and BDO Unibank. SM recognizes that adhering to ESG global best practices is a journey as global guidelines and the needs of SM’s stakeholders continue to evolve.

    The 2014 Unified Annual Reports bagged a Silver Anvil Award for featuring inter-related themes of the company and its subsidiary on new opportunities for growth.

    The 2014 Unified Annual Reports consist of the Annual Report of SM with the theme, “Pursuing New Opportunities for Growth” and that of SM Prime Holdings, Inc. that carried the theme, “Building New Opportunities for Growth”.

    Dubbed as the “Oscars” of the public relations industry in the Philippines, the Anvil is presented to the outstanding public relations tools and programs that have met the high standards set for each category.  PR practitioners, industry communications specialists, academicians and business persons attended the event.

  • SM Malls proves disaster resiliency makes business sense

    SM Malls proves disaster resiliency makes business sense

    SM Malls shopping centres – now a 56-strong network across the Philippines – have evolved into sustainable structures that are proving to be valuable investments in the event of the frequent natural disasters which strike the nation.

    In the last few years, SM malls have consciously integrated disaster risk reduction into design and operations in the midst of worsening effects of climate change.

    Speaking before the annual meeting of the United Nations International Strategy for Disaster Risk Reduction (UNISDR) in London, recently, SM Prime president Hans T Sy shared that the company has taken major steps to ensure the longevity of its developments and safeguard its host communities given this context.

    SM’s malls, with a total gross area of over 7 million sqm, have an average daily foot traffic of over 4 million people and some 15,000 tenants.

    “My experience has proven that investing in resilience of our company’s assets makes good business sense. Depending on the location and assessment of the project, around 10 per cent of capital expenditure is allocated to Disaster Resiliency,” said Sy who is the only Filipino to be part of the UNISDR’s Private Sector Advisory Group.

    “We see the entirety of our malls as a city in itself, with locators, employees, customers and the communities we serve,” he added.

    One of the latest SM malls to open, SM City Cabanatuan in Nueva Ecija, is a good example of how SM Prime has adapted to climate change by making its infrastructure more disaster resilient.

    Cabanatuan was affected by Super Typhoon Lando (International name: Koppu) which caused massive flooding, mudslides and power outages that affected 9 million people in the northern region. The mall’s design allowed the free flow of creek floodwater during extreme flooding while the lower ground structure served as a flood catchment, thereby reducing the risk of flooding and ensuring the safety of the surrounding communities. The mall likewise served as a refuge for over 400 customers and families in the area at the height of the typhoon.

    Over the past several decades, SM Prime has made significant inroads in incorporating disaster resiliency in its centres. The best example is SM City Marikina which opened in 2008 and was built on concrete stilts to allow flood water from the nearby Marikina River to flow freely. When Typhoon Ondoy (International name: Ketsana) flooded most of Marikina City, the mall stood high above flood waters and all its tenants were undamaged and safe.

    The roads surrounding the Marikina mall are at ground level. Anticipating floods during heavy rains at that level, SM Prime constructed the first two levels of SM Marikina as parking areas without wall enclosures. The upper parking level was constructed at an elevation of 20.5 meters. During extreme floods, the parking floors are vacated and the supportive stilts allow for the free flow of water through the lower levels, while the business units continue to operate safely as was seen at the onset of Typhoon Ondoy (Ketsana) when a huge part of Marikina was flooded. The mall became a refuge for stranded people and food seekers. It also became a re-packing center for relief goods.

    SM City Masinag in Antipolo, SM BF Paranaque, SM Angono and SM San Mateo both in Rizal province were provided with catch basins underneath the mall to hold water during flooding.

    SM Muntinlupa in Alabang, was also designed to ensure the safety of the customers even if it was found to be located on a “discontinued major fault line”. Its design features a slab system that minimises the effects of earthquakes.

    The Mall of Asia Complex in Pasay City, one of SM Prime’s biggest investments located on 60 hectares of reclaimed property, has also been been designed for resiliency. He said that the main feature of the complex is that all structures were constructed at a height of 4.5 meters above the National Building Code requirements.

    “SM Prime places crucial importance on disaster resilience, not as an additional cost, but as part of our core business strategy. It allows us to serve our communities better, to be competitive, to increase our value and bottomline. But most of all, disaster resilience ensures the safety of our customers and the communities where we operate,” Sy said.

    Aside from introducing sustainable features in its malls, SM Prime also educates and updates its partners and stakeholders on disaster risk reduction (DRR) through internal procedures and various forums, such as the Green Retail Agenda, Business Case for Disaster Resilience, Top Leaders Forum and others. It also values and supports the government’s programs and initiatives in their information and educational campaigns such as the first Metro Manila Shake Drill for Earthquake Preparedness.

    SM Prime also supports DRR projects such as the Weather Philippines Foundation’s Automated Weather Station (AWS) which specialises in local weather forecasting.  All SM malls have also installed the AWS device which provides online five-day local weather forecasts as a form of public service in support of the government’s weather forecasting.

    SM has also donated 1000 units of disaster resilient houses to victims of Typhoon Haiyan, the strongest storm to make landfall in the southern part of the Philippines.

    SM Prime set up its efforts to lead Philippine businesses and communities disaster-resilient through the Private Sector Alliance for Disaster Resilient Societies (Arise), a worldwide initiative spearheaded by the UNISDR to create more resilient societies.

    Arise was introduced for the first time in Southeast Asia during the 2015 Top Leaders Forum at the SMX Mall of Asia in Pasay City.

    Arise, which was launched in London last September, was created in order to implement the Sendai Framework for Disaster Risk Reduction, a 15-year global roadmap adopted in March 2015 which aims to curb disaster mortality and economic losses substantially.

  • SM Group, Disney seal strategic deal

    SM Group, Disney seal strategic deal

    SM Group is to collaborate with The Walt Disney Company Southeast Asia to bring Disney brands closer to Filipinos through mall, retail, entertainment and amusement opportunities.

    The two companies say they aim to bring Disney, Marvel, Pixar and Star Wars brands to life through “unique Disney experiences at SM’s many leisure and entertainment properties”.

    Fans can look forward to a host of innovative offerings including Disney branded events, promotions and other unique experiences themed around fan-favorite Disney brands and characters.

    “We are thrilled to be associated with the iconic Walt Disney Company,” said Edgar Tejerero, president of SM Lifestyle Entertainment.

    “Henry Sy Sr envisioned and purposed a second home for Filipinos across the nation where they can create memorable bonding activities with their families through amusement facilities, retail centers, and food establishments, all found in one mall. Sixty-five years later, and with 52 malls across the Philippines, it had just been high time that SM forged an official collaboration with the best family entertainment company in the world,” Tejerero said.

    Rob Gilby, MD of The Walt Disney Company Southeast Asia, said Disney makes millions of Filipinos laugh and smile with its stories and characters every day.

    “We have worked with the various arms of SM group over the years and today we are delighted to announce our collaboration on a comprehensive plan to create magical moments and memories that will last a lifetime for fans across the Philippines.”

    SM says it has synergised the efforts of all its subsidiaries – including SM Supermalls, SM Markets, The SM Store, Toy Kingdom, and its lifestyle and entertainment arm, SM Lifestyle Entertainment – to produce a complete and one-of-a-kind Disney experience for its patrons: from the moment they enter the mall to watch a movie, to the time they purchase their favourite snack and Disney merchandise. Patrons can also take their SM Cinema and Disney experience with them home, or wherever they go, through the newly launched Blink app.

    As a precursor to an already successful association, Disney and SM have worked together to bring multiple experiential events to the Filipino families such as the recent Avengers Experience in SM North Edsa, where guests were treated to life-size characters, Avenger-themed games, and a ‘meet and greet’ with Captain America, Thor and Black Widow.

    To officially jump start their partnership, SM and Disney will be launching a “Star Wars Galactic Christmas” to welcome the latest instalment of the movie, “Star Wars: The Force Awakens.” The exhibit will include life-size figurines of characters from the movie, interactive games, and official merchandise from the SM Store and Toy Kingdom.