SM Investments Corp. remains confident about the prospects of malls in the country as a melting pot of consumers.
Dhinno Tiu, executive vice president for operations and sales support in SM Investments’ The SM Store, in a statement said the group’s retail business results for the first half highlights the resilience of consumption in the Philippines despite economic headwinds.
“This also gives insight to the Filipino consumer and what’s unique about the retail landscape in the country,” he said.
Tiu noted that SM malls’ foot traffic increased by more than 100 percent over pre-pandemic levels on year-to-date basis.
SM Retail, SM Investments’ retail arm benefited from the increased traffic, posting an 18 percent increase in revenues in the first half to P163.7 billion from P138.73 billion last year, he noted. The mall business is operated under a separate unit – SM Prime Holdings Inc.
“SM Retail’s net income also grew by 91 percent to P7 billion, benefitting from efficiencies across all retail formats,” Tiu said.
Tiu said retail spaces, particularly malls, will always be the go-to community spaces in the Philippines for Filipino shoppers.
This persists while Filipinos get more comfortable with technology as a result of the recent pandemic, he said.
“Beyond the purchase of life’s necessities, malls have evolved into a hub that serves as the modern-day plaza center for communities all over,” he said.
“Filipinos are returning to shopping, especially in fashion items with vigor. Many also treat shopping as therapy and entertainment. People will always go shopping to feel good about everything that is going on, Tiu added.
Tiu said malls are the new day social platform – a place of convergence, dining and shopping, where people can mingle and relax.
“Despite e-commerce, brick and mortar spaces will always have a compelling value and relevance for the Filipino shopper,” Tiu said.
Tiu said SM will continue building on its strengths to be relevant to its evolving customers. – Ruelle Castro
