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By Likha C. Cuevas-Miel, Reporter
THE holding company of the Philippines’
largest mall developer and operator is expanding its retail business
as it plans to build more department stores, supermarkets and
hypermarkets this year.
In a report to regulators, SM Investments Corp.
(SMIC) said it would add nine supermarkets to its present 29, as
well as two hypermarkets to the existing 11 this year. The SM group
would also be increasing the number of its department stores from 31
to 34.
Last year, SMIC said it would spend about P2
billion for its retail business out of the total P25 billion the
group earmarked for its capital expenditures. This is around P5
billion more than last year’s spending program, with about P15.6
billion of it going to its property development, P6 billion to its
mall business, and P2.3 billion to its banking arm.
About 40 percent of the group’s financing
requirements would be borrowed from foreign and local sources but
the mix would depend on the market situation. Jose T. Sio, SMIC
chief finance officer, told reporters last December that the company
is leaning towards peso loans.
The group’s 12-month income last year was
buoyed by the retail business, which comprises 84 percent of total
revenues. The retail group’s net income from merchandising went up
30 percent to P3.3 billion year-on-year. Last year’s results
included the full-year operations of SM Supermarkets and SM
Hypermarkets that were acquired in June 2006.
At present the group operates 15 department
stores in Metro Manila and 16 in the provinces. Five are stand-alone
stores while the rest are based inside shopping malls. The newly
opened department stores include those within SM Bacolod, SM Taytay,
SM Sta. Rosa, SM Clark, SM Mall of Asia and SM Lipa.
Last year, the group opened one supermarket each
in Bacolod and Taytay while in 2006 it opened supermarkets in Sta.
Rosa, Lipa and Angono. Hypermarkets in Muntin-lupa and Taytay
started operating last year while those in Clark, Mall of Asia, The
Block SM North EDSA and Pasig were opened two years ago.
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