SM tries to lure back scared shoppers with a new mall

MANILA, Philippines — Not even the coronavirus pandemic that emptied shopping centers could stop retail titan SM Supermalls from opening another mall, this time in Zamboanga City as the company aims to take advantage of easing travel restrictions to lure shoppers.

In a statement sent to the stock exchange on Wednesday, Sy-led SM Prime Holdings Inc. — the SM Group's integrated property arm — said "SM City Mindpro" will become its first outlet to cater to residents of Zamboanga City and nearby provinces on Friday, This would be the company's seventh mall in Mindanao since opening up SM City Davao in 2001.

With almost 38,000 square meters (sqm) of gross floor area, the new shopping center will open with more than 90% of spaces already secured by various local and foreign shops, including iconic brands like Uniqlo, Sports Central, Watsons, SurPlus and Ace Hardware.

Other amenities that SM Mindpro will offer to consumers are The SM Store, SM Supermarket, SM Cinema, BDO and Cyberzone.

"The easing of quarantine protocols in various areas in the country has led to the reopening of businesses that will help our economy bounce back quicker," Jeffrey Lim, company president, said.

"We are delighted to welcome our fellow Zamboangueños to this newest SM mall, and assure every one of safety protocols implemented in accordance to government guidelines,” Lim added.

SM Prime's decision to open a new mall came despite depressed consumer confidence as a result of coronavirus lockdowns that threw millions of Filipinos into unemployment, sinking the country's consumption-reliant economy deeper into recession.

The flat-lining consumer sentiment can be gleaned in SM Prime's balance sheet. In the first 9 months, the firm of late tycoon Henry Sy Sr. reported a net income of P14.4 billion, down 48% year-on-year. 

Financial results showed 9-month revenues from the company's local malls plummeted 57% annually to P18.3 billion on the back of 52% on-year decline in rental income after the company delayed the collection of rent payments to help their tenants staf in business. SM Prime operates over 90 SM Supermalls nationwide, the largest mall chain in the country.

"We hope that through SM City Mindpro, which provides a center of convergence for economic, social and cultural activities, Zamboangueños will experience utmost convenience as they seek essential services as well as entertainment during these times,” Lim said.

On Wednesday, shares in SM Prime dropped 3.12% to end at P37.30 each, tracking a decline in the main index.