SMIC to go into convenience store business

Apart from growing its existing food retail operations, the SM Investments Corp. intends to go into the business of operating convenience stores this year as competition sizzles in that segment.

 

A new format is part of the SM Group's consideration in expanding its business, SM Retail executive vice president Robert Kwee told reporters on the sidelines of SM Investments Corp.'s annual stockholders' meeting in Pasay City.

 

"[It's] similar to [a convenience store format]. We are still studying it [and launching will be] this year, hopefully," he added, noting they are in talks with a foreign brand regarding a partnership.

 

Driving the company to enter this format is the growing competition in the segment, the SM official said. "We also have to innovate ourselves, we have to be ready," Kwee said.

 

In November 2012, Ayala Land brought in Japanese convenience store  FamilyMart after its joint venture with Tantoco-led Rustan group signed a shareholders agreement with FamilyMart Co. Ltd. and Itochu Corp. 

 

The Gokongwei group, under Robinsons Convenience Stores Inc., has been operating Mini Stop since 2001. Mini Stop is another Japanese convenience store chain owned by Mitsubishi Group of Japan.

 

Meanwhile, Philippine Seven Corp. is the local franchise holder of 7-Eleven convenience stores.

 

This year, the SM Group will spend over P2 billion to put up 20 more branches of Savemore stores and Hypermarket outside Metro Manila, Kwee said.

 

SM Retail is also open to acquisition of other supermarkets, he added.

 

Last year, SM Retail posted P96.6 billion in sales – up 8 percent and – saying the growing appetite of Filipino consumers and evolving demands of the market helped fuel revenues.

 

It opened a total of 21 stores, including two new WalterMart stores, its most recent acquisition. SM Retail has bought a 50-percent interest in the store chain from the Waltermart Group of Companies. – VS, GMA News