Retail News CRM

Tag: SM

  • SM Group to Divest from Data Centre Business Amid Rising Power Costs in the Philippines

    SM Group to Divest from Data Centre Business Amid Rising Power Costs in the Philippines

    Philippine conglomerate SM Investments Corp., a prominent player in the Sy family business empire, has announced its strategic decision to exit the data centre sector. The company plans to divest its interest in YCO Global Cloud Centres, a move that has raised eyebrows in the industry.

    High Costs Prompt Strategic Shift

    SM Investments’ president and CEO, Frederic C. DyBuncio, pointed to the country’s soaring electricity prices and their relatively small stake in YCO as significant factors influencing this exit. Just a year ago, the company increased its investment in YCO from 10 percent to 18 percent, making this recent withdrawal a notable turnabout. “Right now, we are not really focused on data centres because, from our perspective, power costs are very expensive. The small minority we have in the data centre business, we’ll probably sell that eventually,” DyBuncio revealed in comments reported by the Philippine Star.

    Shifting Preferences in the Data Centre Landscape

    As the market dynamics evolve, DyBuncio highlighted that major global hyperscalers are increasingly favoring locations like Malaysia and Vietnam. These countries present not only lower power expenses but also a reduced risk of natural disasters, making them more attractive for large-scale data operations. It’s a classic case of “the grass is always greener”—but in this instance, it’s clearly rooted in more affordable energy and operational stability.

    A Glimpse into YCO’s Operations

    YCO Global Cloud Centres specializes in developing and operating sustainable, carrier-neutral data centres across the Philippines. Its focus on creating eco-friendly infrastructure shows promise, and while SM Investments steps back, the future of the company may yet remain bright in a region that increasingly demands digital solutions.

    Questions & Answers

    What led SM Investments to exit the data centre business?
    SM Investments decided to move away from the data centre sector primarily due to high electricity costs in the Philippines and their relatively small stake in YCO Global Cloud Centres.

    How significant was SM Investments’ previous investment in YCO?
    Just a year prior to its exit announcement, SM Investments increased its stake in YCO from 10 percent to 18 percent, highlighting a rapid shift in strategy.

    Why are major hyperscalers choosing Malaysia and Vietnam over the Philippines?
    Major hyperscalers prefer Malaysia and Vietnam due to their lower power costs and reduced risks of natural disasters, making these countries more appealing for data centre operations.

  • The SM Store Advances Omnichannel Merchandising Strategies with Aptos Technology

    The SM Store Advances Omnichannel Merchandising Strategies with Aptos Technology

    Aptos, a recognized market leader in retail technology solutions, today announced that The SM Store, the largest department store chain in the Philippines, will deploy Aptos Merchandise Financial Planning to optimize its omnichannel merchandising strategies. The solution will provide end-to-end support for the retailer’s merchandise planning activities across its bricks-and-mortar and online channels.

    The SM Store, formerly known as SM Department Store, has over 60 stores strategically located in key cities throughout the Philippines and carries a wide range of apparel, accessories, housewares, general merchandise and lifestyle products. The SM Store is part of SM Retail, Inc., a significant player in the retail industry in the Philippines.

    SM Retail has come a long way since its founder, Henry Sy Sr., realized his dream to open a shoe store in Manila in 1958. Today, SM’s retail operations are the country’s largest and most diversified, with food, nonfood and specialty retail stores.

    With the guiding principle of offering a one-stop shopping experience, The SM Store continues to enhance the way it engages with its loyal customers. This has included investments in its online shopping platform, ShopSM, allowing customers to shop anytime, anywhere.

    As customers’ browsing and buying behaviors have expanded, so too has The SM Store’s complexity in planning merchandise across channels. In order to delight customers with the right merchandise while consistently meeting financial goals, the Aptos solution will provide end-to-end support for The SM Store’s merchandise financial planning activities. This includes strategic planning and budgeting, planning by attributes, buying and assortment strategy, in-season management, and more.

    Once deployed, Aptos Merchandise Financial Planning will be utilized by over 120 merchandise planners within The SM Store business. The Aptos solution was selected over competitive offerings due to its ability to support The SM Store’s different shop formats and an increasing number of channels, the ease of use and intuitiveness of the application, and the flexibility of the solution to evolve with The SM Store over time.

    “SM’s tagline of ‘We’ve got it all for you’ emphasizes the importance this retailer places on its merchandising strategy, buying decisions and vast assortment,” said Noel Goggin, Aptos CEO and culture leader.

    “Merchandise planning is the foundation of developing, buying and delivering the best assortments to customers while achieving margin and inventory investment targets. With Aptos Merchandise Financial Planning, The SM Store can optimize product distribution and stock levels across channels — a powerful differentiator as it advances its omnichannel vision. We are proud to work with this customer-centric and highly diversified retailer, a true leader in the dynamic and growing Philippine retail market.”

     

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  • SM Aura launches online shopping service during lockdown

    SM Aura launches online shopping service during lockdown

    Philippine shopping mall SM Aura Premier has launched an online shopping service for customers facing restrictions on movement during the coronavirus pandemic.

    The Aura Concierge system allows customers to select a method of receiving essential goods, including curbside and drive-through pick-up. Online users can connect to businesses via social media or directly to order products and arrange payment. It also features an automated chat facility providing details on product availability.

    The service also allows for home delivery via the mall’s bike ride-sharing partner and delivery platform Angkas, who will purchase and pick up items ordered by customers.

    Registered customers are designated a personal shopper who will complete orders and deliver items directly to the customers on the same day of purchase.

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  • SM, Jollibee roll out emergency packages for employees

    SM, Jollibee roll out emergency packages for employees

    As the community quarantine continues all over Luzon, Philippine conglomerate SM Group has committed to maintaining regular pay for all of its employees, without deductions from their vacation or sick leave entitlements.

    The company will also give a US$97.64 (Php5000) additional payment to security staff and janitors, who the company describes as front liners.

    Hans Sy, chairman of the executive committee of SM Prime said that in such trying times, “we are in uncharted territory”.

    “Let’s be one with each other, united in the spirit of service. Let’s be mindful of our front liners and help with their need to be alert so they can continue to do their best in working for the safety and health of our communities.”

    SM earlier said it would waive tenant rentals nationwide as well as support health workers fighting the spread of COVID-19 with $1.95 million (Php100 million) worth of protective equipment, testing kits and supplies.

    Meanwhile, Jollibee Foods Corp has announced a $19.52 million (Php1 billion) emergency-response package for employees affected by the quarantine.

    “In these times, we know how people are worried about their safety and how to take care of their families. We want to help lessen their worries and we are setting up this fund to be able to help them through this difficult time,” said JFC founder and chairman Tony Tan Caktiong.

    The employee package will be given to Jollibee Group’s offices, stores, commissaries, and logistics centres, including the senior citizens and PWDs assigned to stores under the joint employment program with local government.

    The same assistance will be provided to partner employers in stores and other locations.

    Jollibee employees are scheduled to receive their 13th-month pay by April 30. This is in response to President Rodrigo Duterte’s appeal to employers to pay the 13th month early, due to the coronavirus crisis.

    In addition, affected employees may convert the leave credits in advance and can also file for personal leave as necessary until the situation normalizes.

    Jollibee Foods is providing $1.95 million (Php100 million) worth of food to healthcare workers and personnel manning checkpoints around quarantined areas.

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  • SM Markets launches 24-seven shopping in 29 stores

    SM Markets launches 24-seven shopping in 29 stores

    Selected SM Markets stores in the Philippines are to open 24 hours a day to take advantage of the holiday buying surge.

    The Filipino food retailer said shoppers, especially night workers and those leaving holiday shopping to the last-minute, will now be able to shop at its 29 stores even during the wee hours.

    “Morning people can finish their groceries even before getting ready for work and those who hate crowds can now choose to shop at later hours for their convenience,” added SM markets.

    The 24-hour shopping has kicked off at SM Hypermarket located at SM Mall of Asia, which will be open around the clock until December 30 except for on Christmas Day.

    And from December 16 until 23, SM Hypermarket stores in Fairview, North Edsa, Pasig, Marketmall, Jazz, Las Pinas, Sucat, Lopez, Bicutan, Clark, Taytay, Novaliches, Monumento, Cainta, Antipolo and Cherry Congressional will also start operating 24 hours a day. Those stores will also trade nonstop from December 28-30.

    The complete list of 29 stores is available here.

    SM Markets has more than 300 stores nationwide across SM Supermarket, SM Hypermarket and Savemore brands.

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  • Panda Express will open its first Philippines restaurant next week

    Panda Express will open its first Philippines restaurant next week

    US-based Asian dining concept Panda Express will open its first Philippines restaurant on December 12.

    Located at SM Megamall in Mandaluyong City, the first Panda Express will offer the same menu as those in the US, including its signature dish orange chicken in sweet spicy sauce.

    Panda Express Philippines is a 50-50 joint venture between Jollibee Foods Corporation (JFC) and Panda Restaurant Group.

    “Based on the consumer enthusiasm for the upcoming opening, we’re encouraged that the local market will love this food concept, a boost to JFC’s roster of restaurant chains,” said JFC founder Tony Tan Caktiong.

    Panda Express joins the portfolio of brands JFC operates including Chinese dim-sum restaurant Tim Ho Wan, American fast-casual hamburger chain Smashburger and coffee chain Coffee Bean & Tea Leaf.

    Founded in 1983, Panda Express is a privately owned restaurant company with more than 2000 outlets in the US and a presence in 10 international markets including Japan, South Korea, Canada, Mexico and now the Philippines.

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  • SM Prime to open lifestyle mall in Zambales

    SM Prime to open lifestyle mall in Zambales

    SM Prime Holdings is launching a new lifestyle mall in Zambales, the Philippines.

    The firm’s 73rd shopping mall in the territory, a 72,000sqm four-story complex, will open in Olongapo city’s CBD with 85 percent tenant occupancy confirmed so far. It is SM Prime’s second lifestyle mall in Olongapo.

    “Olongapo City remains one of the fastest-growing cities in Central Luzon creating a wonderful synergy on economical and sustainable development,” said SM Prime president Jeffrey Lim. “SM City Olongapo Central will not only enhance the beauty of this thriving city and its province but will also create more jobs and business opportunities to locals who aspire to grow with our company.”

    The mall will feature a food hall, cyber zone, and wellness zone along with six digital cinemas and a convention center, as well as a sports and entertainment venue.

    “SM Prime remains committed to its role as a catalyst for economic growth, delivering innovative and sustainable lifestyle cities, thereby enriching the quality of life of millions of people,” read a statement by the firm.

  • Retail grows 10 per cent for the Philippines’ SM Investments

    Retail grows 10 per cent for the Philippines’ SM Investments

    The Philippines’ SM Investments has achieved 14-per-cent sales growth in the first half-year, its retail division up by 10 percent.

    Profit for the half-year rose 27 percent, with banking and property divisions driving most of the growth.

    The company said SM Retail  – which at the end of June had 2600 stores – earned P5.7 billion (US$109.2 million). Excluding the adjustments due to the adoption of a new accounting standard for leases, (IFRS 16), which changes the way leases are treated in financials, its retail division’s net income grew 10 percent to P6.3 billion.

    Net group income rose to P23 billion ($440.7 million) in the first half, P4.9 billion up on the same period last year.

    “We delivered a strong first half, underpinned by remarkable bank earnings and robust residential take-up,” said SMIC president and CEO Frederic DyBuncio.

    “Our retail business continues to do well and we are pleased with the rapid expansion of our minimart footprint through Alfamart,”

    The company’s property and banking business account for the vast majority of its income – 41 percent and 40 percent respectively. SM Retail accounts for 19 percent.

    The property business SM Prime, which owns 72 shopping malls in the Philippines and seven in China, increased its income by 16 percent to P19.3 billion in the first half. Mall revenues, including retail rents, cinema and event ticket sales and amusement facilities, accounted for 55 percent of SM Prime’s total sales.

    As at the end of June, the Philippines’ SM Investments assets totaled P1.1 trillion, 5 percent more than at the same time a year earlier.

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  • SM Retail Achieves Small Profit Boost

    SM Retail Achieves Small Profit Boost

    SM Retail has achieved a first-quarter profit increase of 5 percent to P2.7 billion (US$51.7 million).

    Retail revenues in the first three months rose by 13 percent year-on-year to P79 billion, while sales from specialty retail stores grew by the same percentage to P19.6 billion.

    As at the end of March, SM Retail had 2385 stores, comprising 63 department stores, 1388 specialty retail stores, 57 SM Supermarkets, 53 SM Hypermarkets, 194 Savemore, 52 WalterMart, and 578 Alfamart stores.

    The figures were included in the quarterly report of SM Investments, which boosted its profit by 26 percent to PHP10.7 billion (US$205 million).

    The gains reflected improved sales from the retail business as well as its property and banking activities.

    Consolidated revenues during the period were up 15 percent year-on-year to PHP109 billion ($2.1 billion).

    “We continued to deliver double-digit growth to both our top and bottom line in the first quarter,” said SMIC president Frederic DyBuncio. “Performance was strong across our businesses, particularly for our banks.”

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  • SM Prime profit rises 16% in first 3 months this Year

    SM Prime profit rises 16% in first 3 months this Year

    Philippine property giant SM Prime Holdings says its net income in the first quarter increased 16 percent based on higher rental income and residential sales.

    Gross earnings increased 14 percent to PHP26.5 billion (US$508.1 million) during the time period, while total outgoing grew 11 percent to PHP13.6 billion ($260.7 million). Net income attributable to shareholders hit PHP8.8 billion ($168.7 million) in the first quarter, in comparison with PHP7.6 billion ($145.7 million) for the same period a year earlier.

    “SM Prime continues to benefit from the overall growth of the Philippine economy that boosts the household income of most families,” said SM Prime president Jeffrey Lim. “We are optimistic that we will sustain this performance this year as we continuously expand our core businesses in developing provincial cities across the country.”

    The firm plans to launch four new malls this year in Pangasinan, Zambales, Caraga and Zamboanga.

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  • SM Prime’s Massive expansion plans

    SM Prime’s Massive expansion plans

    Philippine property developer SM Prime Holdings has committed PHP80 billion (US$1.53 billion) for constructing four new malls, residential units and mixed-use spaces this year.

    The additional capital is intended to support expansions that include opening an additional 200,000sqm of retail space in “developing provincial cities”, including Pangasinan, Zambales, Butuan and Zamboanga.

    As at the end of last year there was 8.3 million sqm of retail space in 72 SM malls throughout the Philippines.

    The firm is also developing new projects and converting mall spaces into mixed-use land.

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  • Henry Sy passes away at 94

    Henry Sy passes away at 94

    The founding father of Philippine retail, Henry Sy, has passed away. Sy, who has topped the Philippines Rich List for the last seven years, was chairman emeritus of SM Investments, one of the country’s largest business conglomerates. A Chinese immigrant who arrived in the Philippines at the age of 12 with his parents, his introduction to retailing began with helping out in his father’s neighbourhood store. He saved enough money to open a shoe store which he named ShoeMart, and whose initials later became the most recognisable brand name in the nation.

    From a single shoe store, his business expanded into department stores, the first of which opened in 1972, then into malls, with 70 shopping centres bearing the SM brand in the Philippines and more in Mainland China.

    SM Investments also owns supermarkets, BDO Unibank, almost 50 residential developments, six hotels and nine office towers.

    Sy, who died on Saturday, stepped down as chairman of the company in 2017, taking on the title chairman emeritus and leaving the business under the leadership of his family and his long-time business partner Jose Sio, who is now chairman.

    He had six children: Teresita Sy-Coson, Elizabeth, Henry Jr, Hans, Herbert and Harley. Teresita and Henry Jr are vice chairpersons of SM Investments and Harley serves as executive director of SM.

    Forbes last year estimated the 94 year old’s net worth at US$19 billion, ranking him the most wealthy Filipino and 53rd richest man in the world.

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  • Ikea to open world’s largest store in the Philippines

    Ikea to open world’s largest store in the Philippines

    Ikea Philippines says its first store will take up an enormous 65,000sqm space, making it the world’s largest. The current largest Ikea store globally opened in Seoul in December 2014 and takes up 59,000sqm. Local franchisor Inter Ikea Systems, which operates the homewares and furniture retailer in Malaysia, Singapore and Thailand, chose to partner with SM Malls for its Philippine launch. The store will become an anchor of the giant Pasay mall, and its largest tenant when it opens in 2020.

    The size of the store reflects the huge consumer catchment: more than 5 million households within 60 minutes drive.

    Inter Ikea says the store will stock 9000 products and host a warehouse to fulfil online orders and an integrated call centre. A Philippine-specific website will launch prior to the store opening to help build brand awareness and offer design inspiration.

    “The Ikea vision is to create a better everyday life for the many people, so we are excited to be bringing our offer to a country where millions of people share our passion for home,” said Ikea Southeast Asia MD Christian Rojkjaer.

  • Garmin Philippines reports positive growth

    Garmin Philippines reports positive growth

    Active lifestyle smartwatch Garmin Philippines will introduce its expanded line to the Philippine market and open another location this year in Vertis North Mall Quezon City and its first-ever branch in Mindanao at the SM Lanang Premier (Davao).

    Garmin Philippines (Navco Inc.) president Ryan Tan says the expanded range is made for any kind of lifestyle, whether for everyday or for adventures.

    “Before, Garmins were primarily used by hardcore runners, triathletes and adventurers. In IronMan events almost 80 per cent of athletes use Garmin. Now Garmin has evolved into a lifestyle watch brand.”

    He says it looks like a normal everyday analog watch but with smart wellness features. The Vivomove HR, for example, is a hybrid smartwatch with a discreet touchscreen. It features a crystal touchscreen with a discreet display. Precision hands show the time and dynamically move away when the user swipes through their messages, heart rate and more. It counts the user’s steps and calories while monitoring wellness, including all-day stress tracking plus the relaxation-based breathing timer.

    The US brand has also introduced multisport watches such as Forerunner® 645 and the DescentTM Mk1. Up to 500 songs are built in to the Forerunner® 645 Music, which also offers smart notifications plus the ability to send prewritten responses to text messages, automatic uploads to the Garmin connect app and the ability for others to track your runs with the LiveTrack feature.

    Meanwhile, the Garmin DescentTM Mk1 is a do-it-all dive computer, the first of its kind to pack surface GPS navigation with full-color onscreen mapping and location reference. On top of that, it features an algorithm that alerts you when you’re beyond your dive limits.

    Meanwhile, Garmin is launching the Garmin PH Community on Facebook for Garmin users and fans in the Philippines.

    Garmin opened its first concept store in Glorietta 5 in 2014, followed by outlets in Uptown Mall BGC, SM North Edsa, The Podium, SM Megamall, SM Mall of Asia, SM Aura Premier and Alabang Town Center.

  • Ikea Philippines launches at the Mall of Asia

    Ikea Philippines launches at the Mall of Asia

    Ikea Philippines will open its first store next to Mall of Asia in Manila in 2020.

    Inter Ikea Systems announced in February it had appointed Ikea Southeast Asia (Ikano) as Philippine franchisee, the same company that holds the rights to Singapore, Thailand and Malaysia.

    In an exclusive interview with Inside Retail Asia, Ikea Southeast Asia MD Christian Rojkjaer says Ikea chose to open its first Philippine store at SM’s Mall of Asia as it is such an impressive, established centre. “It’s already there and we have no chance to beat it.”

    However, future stores might be integrated with Ikano’s own shopping-centre developments, similar to Bangkok’s Mega Bangna, Kuala Lumpur’s MyTown and the Toppen Tebrau under construction in Johor Bahru, Malaysia.

    “What happens in Malaysia and the Philippines is that we go in and… we must create the best shopping destinations in that country either alone or with somebody else. So we do it shopping centre by shopping centre with the customer in mind. We are not like, ‘It has to be ours’. It has to be the best position for our customers. So let’s see what is going to happen [in the Philippines], but the first one will be with SM.”

    Ikano is one of 10 Ikea franchisees worldwide and the only one owned by members of the founding Kamprad family. It had to pitch for the Philippines franchise, as it did for the Indonesian one (which it lost to Jardine Group’s Dairy Farm International in Hong Kong).

    Southeast Asia is one of the few growth regions in the world for Ikea, where many local markets have developing economies so its customers have lower average incomes than in more developed markets.

    “That has been quite challenging,” Rojkjaer tells Inside Retail Asia. “We want to be for the many in a country, but when we go into the Philippines, for a while it will be for a lot, but not for everybody. Then we will grow our presence and become more for the many, as we say. Of course, not everybody in the Philippines can afford us today, but we will work on that and adapt our range and become better and better to become something for many more people.

    “That will certainly be the same in Vietnam, Myanmar, Laos and Cambodia, too. That said, our range will fit a lot of people in all those countries from day one.”

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