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Tag: SM

  • SM scraps Goldilocks acquisition deal

    SM scraps Goldilocks acquisition deal

    SM Retail, a subsidiary of SM Investment Corporation (SMIC), has called off a planned acquisition of Goldilocks Bakeshop chain in the Philippines.

    This follows the Philippine Competition Commission (PCC) approving the takeover just last month.

    Citing changes in the business environment, SMIC corporate secretary Elmer Serrano has confirmed that SM Retail has backed out of the deal, saying it was a joint agreement.

    SMIC, through SM Prime Holdings (SMPHI), runs nearly 70 SM Malls in the Philippines, while Goldilocks has a network of more than 500 stores, some of which are in SM Malls. The acquisition would have made Goldilocks a subsidiary of SM Retail.

    Both parties had committed to address potential competition issues when submitting details of the proposal to the PCC. Concerns included the possibility of limited retail space in SM Malls for Goldilocks’ competitors. There were also concerns SM Retail might gain access to competitors’ sales information.

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  • SM acquisition of Goldilocks OKd

    SM acquisition of Goldilocks OKd

    SM Retail has received approval from the Philippines antitrust body to acquire the Goldilocks Bakeshop chain.

    This follows the two parties submitting commitments to address potential competition issues in the deal, says the Philippine Competition Commission (PCC).

    SM Retail is a subsidiary of SM Investment (SMIC), which through another subsidiary, SM Prime Holdings (SMPHI), runs nearly 70 SM Malls in the Philippines. On the other hand, Goldilocks has a network of more than 500 stores, some of them in SM Malls.

    Potential concerns included the possibility that retail space in SM Malls might be limited for Goldilocks’ competitors. There were also concerns SM Retail might gain access to sales information from competitors and share it with Goldilocks.

    PCC chairman Arsenio Balisacan says mall owners should not be allowed to discriminate when it comes to tenants and lease applicants, “especially those that compete with stores owned by the mall itself”.

    After the acquisition, Goldilocks will become a subsidiary of SM Retail.

    In its voluntary commitment, which the PCC approved in December, SMPHI undertook to give Goldilocks’ competitors “a fair share in their lease at all times”.

    SMPHI also committed to data protection: not to allow Goldilocks access to competing tenants’ information, including sales data captured by the POS system of SMPHI tenants.

    “The commission appreciates SM’s move to make these voluntary undertakings – proof that PCC and the business community can work together to promote a culture of competition,” says Balisacan.

    The SM Group is also legally bound to comply with its commitment and submit reports to the PCC. The parties will be monitored periodically by a team of PCC experts over a five-year period. This will include random inspections, says the commission.

    SM Group negotiations to acquire a controlling stake in Goldilocks Bakeshop were revealed in August.i

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  • SM Prime adds to Luzon portfolio

    SM Prime adds to Luzon portfolio

    Philippine integrated property company SM Prime Holdings has opened a mall in Batangas to continue its expansion in southern Luzon.

    SM Center Lemery adds 25,000sqm to SM Prime’s total gross floor area in the Philippines, and follows SM City Batangas and SM City Lipa.

    It opened with nearly 90 per cent of space leased. There are three floors of mixed retail and food tenants including brands such as Ace Hardware, BDO, Miniso, Simply Shoes, SM Appliance Center, SM Hypermarket, Surplus and Watson’s. There are also a Cyberzone and a Wellness Zone.

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  • Fourth mall in Bulacan by SM Prime

    Fourth mall in Bulacan by SM Prime

    SM Prime Holdings has continued its expansion in northern Luzon with its latest mall, SM Center Pulilan, in Bulacan.

    Its 66th mall in the Philippines, it adds 27,000sqm in gross floor area (GFA), taking SM Prime’s total GFA to 8 million sqm.

    Opening with 80 per cent occupancy, SM Center Pulilan offers three levels of retail and dining including such brands such as Ace Hardware, BDO, Miniso, Simply Shoes, SM Appliance, SM Hypermarket, Surplus and Watsons.

    It joins the group’s first three malls in Bulacan – SM City Marilao, SM City Baliwag and SM City San Jose Del Monte.

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  • Philippine tycoon Henry Sy’s grandson Howard aims to carve out his own niche with self-storage biz

    Philippine tycoon Henry Sy’s grandson Howard aims to carve out his own niche with self-storage biz

    Howard Sy, the grandson of Chinese-Filipino retail magnate Henry Sy Sr, is on a mission to establish his own business empire and he is starting with self-storage.

    Last year, the millennial businessman launched StorageMart, a self-storage service for individuals, households, and businesses. Howard said he is looking to expand to all the major cities in Metro Manila.

    “So far, we have two facilities in Makati. One in Yakal Street and the other in Eran Street, which is closer to [Bonifacio Global City]. We recently just opened StorageMart Eran, which now also includes climate controlled units for customers who need to store sensitive items,” he said.

    The 28-year-old entrepreneur is the third of the four children of Hans Sy, the second son of Henry Sy Sr, who is the richest man in the Philippines, according to Forbes. Sy, turning 93 in December, is chairman emeritus of diversified conglomerate SM Investments Corp. The tycoon began his mall empire from his first ‘Shoemart Store’ in Carriedo, Manila in 1958.

    It may be too early to predict that Howard could create a new business empire such as his grandfather’s SM Group of Companies, but the millennial businessman is bent on taking the same path — establishing a business through one’s own resources or bootstrapping.

    What made you decide to start your own business?

    Ever since I was young, I wanted to start my own business. One way or another, I was going to make it happen. I initially worked as an analyst for Macquarie Funds Group for three and a half years. We had a Philippine infrastructure fund investing in the local infrastructure. This provided me with the right foundation and work ethics, and a good amount of seed capital for my first business. One afternoon, I was watching the show “Storage Wars” on TV with my family and it hit me: “Is there a market for self-storage in the Philippines?” After a bit of research, I saw that there was, and that’s when the idea of StorageMart was born. After two years and a couple of failed property negotiations, I finalized my first property and opened StorageMart Yakal.

    How do you see self-storage business as a sector? What is your vision for StorageMart?

    The self-storage industry in the Philippines is currently in its infancy stage as there are only a few players in the industry so far. The primary goal of the sector is industry awareness. Filipinos need to be made aware that we now have the self-storage service in the country, and this is different from their stereotype thinking of what an extra storage space is. Currently, many people view the storage service as just a worn down dingy extra space you throw your extra stuff in at dirt cheap prices. This is where StorageMart comes in and educates the market that there is such a thing as quality convenient self-storage spaces at affordable rates.

    I plan on making StorageMart the benchmark of quality self-storage in the Philippines. I want to offer international quality self-storage service locally, while keeping it at affordable rates. Our self-storage facility locations will focus on convenience for our customers as they will be situated in extremely accessible locations.

    Although you belong to the millennial generation, you seem to be more traditional when it comes to business. Are there other brick-and-mortar businesses you want to explore and why?

    In terms of business, I am more traditional since I grew up under the tutelage of my family. They’re all very traditional, so I turned out somewhat similar, but that doesn’t mean I’m not interested in online businesses.

    Currently, there’s no other brick-and-mortar business I’m looking into, but there are definitely some online businesses I would love to explore. The biggest draw of an online business for me is the fact that the initial capex for one is just so much lower than a brick-and-mortar business. Expansion is not hindered by the lack of capital. Its potential to grow also won’t be hindered by a physical location. The potential is enormous, but so is the chance of failure.

    Are you also an investor? Are you interested in investing in online platform businesses?

    I’m not much of an investor. All of my savings and earnings are in StorageMart, so I don’t really have much capital for anything else. I am definitely interested in making an online platform business. Who wouldn’t be? It really just boils down to finding the right idea and executing it.

    Have you considered launching an IPO someday for StorageMart?

    I would consider launching an IPO for StorageMart. I’ve heard that in the US, self-storage REITs are one of the top performers throughout the years, so I would hope StorageMart could do the same.

    As a young businessman, are there other knowledge and skills you’re interested to learn and why?

    I would love to learn more with regards to the technical skills in running an online business. I, for one, am not too comfortable getting into an online business, where I would have to be reliant on someone with an IT background just because I literally have no knowledge about it. If I ever get into that, I’d definitely look into learning even some basic knowledge of the field.

    Belonging to a family of the most successful business people in the Philippines, what are the important lessons in life and business that you learned from them?

    Be extremely hands-on. Know every part of your business. There is no excuse to not understand or be on top of any part of your business when it is just starting up. How else will you compete with the bigger and more established companies? Be patient. Don’t expect to get rich quickly. Put in the hard work, so that when the opportunity comes, you will be ready. Be thrifty. Once you realize how hard and slow it is to earn money, you’ll naturally become thrifty.

     

  • SM Prime revenue going up

    SM Prime revenue going up

    Rental revenues from mall expansions and consistent improvement in same-mall sales have helped boost income for integrated property company SM Prime Holdings.

    For its third quarter, the company had 16 per cent year-on-year net income growth to PHP5.6 billion (US$110.5 million). This led to a 15 per cent increase in net income in the first nine months to PHP20 billion.

    Consolidated revenue was up 12 per cent to PHP64.6 billion, while overall operating income grew by 16 per cent to PHP30.1 billion.

    “Our performance in the third quarter is a testament to the buoyant overall economy that benefits the whole property market,” says SM Prime president Jeffrey Lim.

    Mall revenues for the first nine months showed 10 per cent growth to PHP38.5 billion, with the malls contributing 60 per cent of consolidated revenues. Mall rentals went up by the same percentage to PHP32.8 billion, primarily because of expansions and openings over the past two years. Same-mall sales were steady with 7 per cent growth.

    Cinema and event ticket sales eased by 3 per cent to PHP3.3 billion, whereas revenues from amusement and merchandise sales surged by 26 per cent to PHP2.4 billion.

    Consolidated mall operating income improved by 12 per cent to PHP21.3 billion, with the operating margin maintained at 55 per cent.

    SM Prime has 65 shopping malls in the Philippines and seven in China, and will open two more malls this year, SM Center Lemery in Batangas and SM Center Pulilan in Bulacan, taking its provincial property count to 44 from 38 a year ago.

  • FamilyMart Philippines chain up for auction

    FamilyMart Philippines chain up for auction

    FamilyMart Philippines convenience-store chain, partly owned by the Ayala and Tantoco groups, is up for auction.

    With about 70 stores, the Japanese chain has been offered to prospective investors in the past few months.

    Ayala Land and the Rustan’s group, via their equally owned JV firm Sial CVS Retailers, in 2012 signed a deal with FamilyMart and Itochu Corporation to develop and run FamilyMart convenience stores in the Philippines.
    FamilyMart has been closing unprofitable stores over the past 12 months.

    In the convenience store market in past six years, new brands have been challenging 7-Eleven and MiniStop, respectively run by Philippine Seven Corporation (PSC) and Robinsons Retail Holdings.

    Aside from FamilyMart, the Puregold group also brought Japan’s Lawson into the market while the SM group introduced Indonesian brand Alfamart. Meanwhile, real-estate magnate Manuel Villar has also built his own convenience-store network, All Day.

    To date, the two original brands still lead the market, with 7-Eleven surpassing 2000 outlets while Mini-Stop has at least 500 stores.

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  • Adidas HomeCourt store opens at SM Megamall

    Adidas HomeCourt store opens at SM Megamall

    Sports Central’s new Adidas HomeCourt Concept Store on the ground floor of the SM Megamall in Ortigas, Metro Manila, brings together innovation in both design and retail.

    Covering 279sqm, the store is designed as a retail space offering a sporting arena experience. Customers are welcomed by a bold, distinctive Arena Facade, similar to the entry points of many Adidas sporting venues. Window displays feature the brand’s latest campaigns.

    At the heart of the store is “the Shoebase at Centerfield”, where customers can check out the latest footwear across all sport categories. Surrounding this is the concourse, where customers can engage with different categories and sub-brands. The store’s wall fixtures are simple metallic frames that allow the products to stand out.

    Another highlight is the Team Room, a themed changing area that elevates the fitting experience – the locker-room vibe allows customers to feel like they are part of the team. The decor features key Adidas athletes like Caroline Wozniacki, Damian Lillard and James Harden.

    As well as athletic footwear, the store offers sports apparel and accessories. A feature is the Adidas Warp Knit collection for training, as worn by supermodel Karlie Kloss.

  • SM Store offering discount deliveries

    SM Store offering discount deliveries

    Mall chain The SM Store has launched a nationwide delivery service in conjunction with courier company LBC Express until the end of the year.

    Its “You Shop, We Move” promo offers shoppers a discount for every transaction through LBC, which has branches inside SM Supermalls.

    Shoppers simply present the purchase they want delivered, along with the SM Store receipt.

    The promotion covers local destinations.

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  • SM’s Logistics 2Go mulling e-commerce expansion

    SM’s Logistics 2Go mulling e-commerce expansion

    Logistics 2Go Group, which has just been taken over by Chelsea Logistics Corporation and the SM Group, is studying a possible expansion into e-commerce.

    President Dennis Uy says there is nothing definite yet, especially with the cost being “quite high”.

    He says e-commerce would be the final link to its logistics business chain as 2Go is already fully integrated from warehousing to shipping to courier and door-to-door package-delivery services. It could either venture into the front-end of the e-commerce business in partnership with the SM group or just service companies already engaged in e-commerce.

    However, Uy says it is not easy, and “it is not necessary that we should be there”. But it could happen in the next two years.

    “As the country industrializes, we’ll have more options to shop. We won’t want to go to the mall. We’re very product-specific, and more people will be banked, using debit/credit cards.”

    He says the challenge is to make the expansion profitable.

    “In terms of e-commerce, we plan on partnering with SM because it is really strong in that field. It is already an established brand,” says Uy.

    The SM Group’s non-food retail unit The SM Store launched into e-commerce in 2014.

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  • SM Investments Corporation announces key organizational changes

    SM Investments Corporation announces key organizational changes

    The Board has already conferred upon Mr. Henry Sy, Sr. the role of Chairman Emeritus, in recognition of his role as the founder of SM and all of its core businesses. Mr. Sy, who is a multiawarded entrepreneur and philanthropist, opened the first ShoeMart store in 1958, a business now simply known as SM, and fostered it to become one of the largest holding companies in the country.

    SM has likewise evolved into a dynamic and highly synergistic group of businesses with market leading positions in retail, banking and property development as well as a growing portfolio of other investments that can capture the high growth opportunities in the emerging Philippine economy.

    Board Changes

    Mr. Jose T. Sio was appointed to succeed Mr. Sy as the Chairman of the Board. Mr. Sio, as SM’s Chief Financial Officer for 26 years, was highly instrumental in supporting the phenomenal growth of SM and its subsidiaries. He instilled strict financial discipline across all businesses that later helped the company achieve optimal results even as the whole group maintained a sound and stable financial position. Mr. Sio was a senior partner at Sycip Gorres Velayo & Co prior to joining SM on November 1990.

    New members of the board include Mr. Frederic C. DyBuncio as Director and Mr. Alfredo Pascual as Independent Director replacing Mr. Ah Doo Lim who joined the Board in 2008 and has served the full term as an independent director.

    Mr. DyBuncio brings with him a wealth of experience in banking where he spent over 20 years with JP Morgan Chase and its predecessor companies. He was assigned to various places apart from the Philippines such as New York, Seoul, Bangkok, and Hong Kong and held various executive positions where he gained substantial professional experience in the areas of credit, relationship management and origination, investment banking, capital markets, and general management.

    Mr. Alfredo Pascual just completed his six-year term as President of the University of the Philippines (UP). Prior to his involvement in the academe, he worked at the Asian Development Bank (ADB) for 19 years in such positions as Director for Private Sector Operations, Director for Infrastructure Finance, and Advisor for Public-Private Partnership.

    Mr. Pascual was also among the pioneers in investment banking in the Philippines having held executive positions in State Investment House, Inc., First Metro Investment Corporation, Philippine Pacific Capital Corporation now known as RCBC Capital, and Bancom Development Corporation which eventually merged with Union Bank.

    Management Appointment

    Mr. DyBuncio will assume the role of President of SM Investments in place of Mr. Harley T. Sy who will remain as Executive Director of the Board. Mr. DyBuncio joined SM in 2011 as Senior Vice President and eventually as Executive Vice President handling the company’s portfolio investments. This portfolio has since grown to include Belle Corp., Atlas Mining, the Net Buildings, CityMalls, MyTown, and most recently, 2Go.

    These changes affirm the continuing role of professionals in executing the larger vision of SM while further strengthening the group’s good governance and sustainability practices.

  • Philippines: SM Investments picks 62.21% in MyTown dormitory brand owner PULS

    Philippines: SM Investments picks 62.21% in MyTown dormitory brand owner PULS

    SM Investments (SMIC) has taken 62.21 per cent controlling stake in Philippines Urban Living Solutions Inc (PULS), the operator of dormitory buildings under the MyTown brand.

    According to an SMIC disclosure, it acquired more than 674.8 million common shares of PULS, with price less than 10 per cent of the giant holding company’s net book value, which was determined based on appraised asset value.

    “This acquisition allows SMIC to capture growth opportunities in the dormitel segment,” SMIC informed the Philippine Stock Exchange.

    Established in 2012, PULS owns, develops and operates dormitory spaces for rent under the MyTown brand aimed at young professionals. It has built rental housing communities at a walking distance from the central business districts of Metro Manila.

    “MyTown’s dormitories are equipped with attractive amenities and targeted retail facilities that allow its tenants to save on travel time and transportation cost,” SMIC said in its statement.

    A holding firm of conglomerate SM Group of Companies, SMIC is engaged in retail, property, financial services, among others. Among its subsidiaries are The SM Store, SM Supermarkets, SM Hypermarkets, SaveMore, Waltermart Supermarket Inc, SM Prime Holdings Inc, BDO Unibank and China Bank.

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  • SM Supermalls teams with Grab

    SM Supermalls teams with Grab

    SM Supermalls has partnered with ride-hailing and multi-service mobile platform Grab in a special promotion.

    Grab

    The companies will offer 10,000 Grab coupons in Metro Manila and such key cities as Bacolod, Cebu, Davao and Iloilo. New users are offered free rides while existing Grab customers receive half-price rides.

    “Our collaboration with Grab marks not just a beginning of a bigger, long-term partnership, but also gives a glimpse of what our customers can expect in the coming months,” says SM Supermalls senior VP for marketing Jonjon San Agustin.

    Grab booths are available at 20 SM Supermalls nationwide, and the coupons are part of a campaign to reward shoppers. The SM Supermalls mobile app is free on Android and iPhone.

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  • SM Simply Shoes plans 100 stores

    SM Simply Shoes plans 100 stores

    Retail chain SM will help its footwear affiliate SM Simply Shoes reach a total of 100 stores across the Philippines by the end of next year.

    SM Simply Shoes has 24 outlets since opening in September 2014, and aims to reach its 60th store by the end of this year, says SM assistant VP Elizabeth Nathalia Tinio.

    She says the shoe store targets emerging cities and towns while the main SM malls serve the metropolitan cities and sell more expensive branded footwear.

    SM has also set a target to reach 75 stores by next year.

    Four Simply Shoes stores have opened already this year, in Kabankalan and Victorias in Negros, in Boracay in Aklan, and, this week, in the new CityMall in Tagum, Davao del Norte. It plans more stores in Bulua, Cagayan de Oro City, inside MinPro Mall in Zamboanga, inside CityMall in Dipolog City, in Lam-an, Ozamis City, and in Surigao City.

    Simply Shoes offers affordable shoes and bags and carries 20 brands including SM’s Parisian brand and Solemate.
    “The shoe industry in the Philippines is growing by 5 to 10 per cent every year,” says Tinio.

    Simply Shoes’ stock comes from suppliers in China as well as from Filipino shoe manufacturers in Marikina.

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  • SM Aura Premier the first and sole mall in the Philippines to achieve Leed Gold certification

    SM Aura Premier the first and sole mall in the Philippines to achieve Leed Gold certification

    The LEED (Leadership in Energy and Environmental Design) rating system, developed by the U.S. Green Building Council (USGBC), is the foremost program for buildings, homes and communities that are designed, constructed, maintained and operated for improved environmental and human health performance.

    According to LEED Consultant Raymond Andrew Sih, SM Aura achieved LEED Gold by meeting and exceeding international standards in indoor air quality, thermal comfort, then energy and water efficiency. He cited the mall’s very own waste water treatment plant that recycles water for non-potable use, the energy efficient LED lighting system, the centralized air conditioning system cooled with recycled water, and double low emissivity insulated glass panels, to name a few. In addition, the entire operation is run optimally with regular measurement and verification.

    “SM Aura Premier was built with the environment in mind. Almost a third of the cost of construction materials were locally sourced, over twenty percent of the cost of construction materials were from recycled materials, and over ninety-five percent of the construction waste was recycled,” Sih said.

    Sih also pointed out SM Aura Premier’s Sky Park, which covers more than half of the building. The roof garden, according to Sih, not only “provides visitors with a great place to dine, relax and enjoy views from up high; it also gives plants plenty of soil, recycled water, and room to grow while protecting the building from the heat of the sun.”

    Apart from this outdoor green feature, SM Aura also maintains good indoor air quality for its occupants. The mall is also conveniently located where one can walk or bike to various businesses, offices, homes, public amenities, and transportation facilities.

    Mahesh Ramanujam, president and CEO of USGBC, underscored the significance of SM Aura Premier’s LEED Gold certification. “Achieving LEED certification is more than implementing sustainable practices. It represents a commitment to making the world a better place and influencing others to do better,” Ramanujam said. “Given the extraordinary importance of climate protection and the central role of the building industry in that effort, SM Aura Premier demonstrates their leadership through their LEED certification of Gold.”

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