SMIC to double the number of Alfamart stores by 2020

MANILA, Philippines — SM Investments Corp., the listed conglomerate of the Sy Group, will add more Alfamart branches within the next two years to bring its total portfolio in the country to at least 1,000.

The Indonesian mini-mart chain, which the SM Group brought to the country, currently has  at least 500 branches in the Philippines.

In an interview on the sidelines of SMIC’s annual stockholders meeting late Wednesday afternoon, SMIC senior vice president Franklin Gomez said the company would likely hit the 1,000 mark by 2020.

He said it is important to have the logistics in place to support Alfamart’s growth.

SMIC will build depots in certain locations to support the operations of Alfamart.

Gomez downplayed fears that Alfamart could cannibalize or compete with the existing supermarkets of the SM Group.

Fitch Ratings earlier cited Alfamart’s potential in the country, driven by its partnership with the SM Group.

It said Alfamart has access to SM Group’s large business network.

The Indonesian firm holds a 35 percent stake in SMIC-led Alfamart Philippines.

SMIC grew its net income 13 percent last year to P37.1 billion, driven by the strong performance across its property, retail, and banking operations.  Revenue rose 13 percent to P449.8 billion.

As of the end of 2018, SM Retail had a total of 2,328 outlets, comprising 63 SM Stores, 1,383 specialty retail outlets, 56 SM Supermarkets, 53 SM Hypermarkets and 195 Savemore, 52 WalterMart and 526 Alfamart stores.