SM Hypermart to open two more branches in Pangasinan, Bulacan

SY-LED SM Hypermarket is allotting at least P300 million for two more branches at the planned SM malls in Bulacan and Pangasinan. SM Hypermarket is building its 12th and 13th branches, which will cost around P150-P200 million each, in Rosales, Pangasinan and Baliuag, Bulacan before the year ends, SM Hypermarket Executive Vice-President Robert Kwee told reporters on the sidelines of a press briefing by Eton Properties Philippines, Inc. last week. The branches will be inside the two SM malls, construction of which is expected to be finished next month. "We just follow the malls," Mr. Kwee said. He said the company seeks expand SM Hypermarket’s reach by opening three to five branches yearly. There are no specific locations yet for the branches, but Mr. Kwee said their 14th branch will inside Eton’s 12-hectare project in Quezon City. SM Hypermarket was started by the Sy family back in the late 1990s in response to the growing needs of the market for more convenience. According to the company, the new retail format of combining a supermarket and a department store has only recently been accepted by Filipino shoppers. Today, SM Hypermarket, a new business entity of the SM Group of Companies, has combined an indoor wet market, food and general merchandise store to provide one-stop shopping convenience for shoppers. Eton President Danilo E. Ignacio earlier said Eton Centris had signed a deal with SM Hypermarket for it to become its anchor tenant. Eton expects to complete Centris Station, which will feature supermarkets and retail stores, by the fourth quarter of next year. "It is our commitment to SM to deliver the space to give them a chance to open in time for Christmas [next year]," Mr. Ignacio said. He added that they hope to forge a long-term relationship with the Sy-led company, although they are only looking at the retail side of the taipan’s business. "There are a number of projects in the pipeline, and SM will be our preferred retail locator," Mr. Ignacio said. Net profits of Sy-led holding company SM Investments Corp. went up by more than a tenth to P2.73 billion in the second quarter, driven by its four main businesses — property, shopping malls, retail merchandising and banking. As of August, SM’s retail group already had 89 stores composed of 31 department stores; 32 supermarkets, nine of which are SaveMore branches; 11 Hypermarts; and 15 Makro outlets. Aside from the two Hypermarts, the company said it would set up two more department stores, two supermarkets, and three SaveMore branches. The company recently opened its new mall in Marikina and is planning to open two more malls in Rosales, Pangasinan and Baliuag, Bulacan, as well as expand SM Megamall, SM North EDSA and SM Fairview. — Kristine Jane R. Liu, BusinessWorld