Minimart brand boosts SMIC’s retail coverage

CEBU, Philippines - Apart from its active move to expand its bigger and medium-sized retail platforms in Southern Philippines, the SM Group is bullish on speeding up its retail coverage in the minimart concept through the Alfamart brand.

"Retail is an exciting place for us now," said Corazon P. Guidote, SM vice president for investor relations in a press conference held yesterday at the Radisson Blu Cebu.

 Guidote along with Tim Daniels, the consultant for investor relations of SM Investment Corporation, and other executives were in Cebu yesterday to promote equity investments to Cebuanos.

 According to Guidote, the reassuring six to seven percent GDP growth of the Philippines is putting the country in the "sweet spot," and other positive economic kicks, such as expanding middle-class, growing OFW remittance, double-digit BPO growth, among others, prompted the Sy-led conglomerate to put in more money in investments and powering up further its lead in retail business.

 Alfamart is SM Group’s platform to penetrate the small-sized retail corners or the mini mart concept that will soon enter the Visayas and Mindanao following the opening of 160 stores in Luzon a year after SMIC clinched a partnership deal with the Indonesian convenience store giant.

 While the retail market in the country is too attractive, Daniels said SM is pressured on how to expand quickly by penetrating practically all the corners in the country.

 With the introduction of Alfamart, Daniels said SM hopes to provide formal retail format in neighborhood communities, without in crashing the existence of sari-sari stores.

  Alfamart will join the retail roster of SM which includes 53 SM department stores, 44 hypermarkets and 213, and specialty brands under newly consolidated SM Retail Inc, consisting of over 1,300 retail outlets.

Alfamart Philippines stores will have basic groceries, food, medicines and convenience food, ready-to-cook food, frozen meats, and will initially open in early morning to late night time.

This Indonesian minimart brand is providing SM Group with experience and advice on the format’s expansion, stocking and rollout.

Each store ranges from 150 sqm to 300 sqm in size and costs a maximum of P30 million (US$681,000) to open.

SM is banking on two-thirds of the Philippine population who is not served well by the formal retailing platform. Entering into the convenience-store type of retail platform is also the company's one of the creative ways to accelerate retail coverage.

Meanwhile, Guidote also hinted the Group's aggressive expansion plans in Cebu and other parts of Southern Philippines, mentioning the newly opened SM Seaside as just a kick-off for some bigger projects in Cebu and other parts of Visayas and Mindanao.  (FREEMAN)