More than malls: Expanding horizons
To many Filipinos, it is enough that the mall offers everything: entertainment, health and fashion, food, furniture and appliances, groceries, you name it.
That being the case, SM becomes their destination of choice, certainly for shopping and, as often the case, also for hanging out. However, SM is more than just a retail and mall operator. It is also heavily engaged in banking, and integrated property development.
As of the first quarter, the SM chain of malls generated 69 percent of the earnings of SM Prime Holdings, the property arm of SM Investments Corporation, the Sy family’s holding company.
So it is perfectly understandable that people should think of SM when the topic of malls arises regardless of the context. There is one, possibly two or more, SM mall in every city in Metro Manila and at least one in every population center all over the country.
The SM logo looms large everywhere. It is imprinted in the collective consciousness of people.
In 1985, SM City North EDSA opened its doors to the public. As it turned out, it was only the first mall of what would become the largest chain of malls in the country. Eighty-eight SM malls operate in the Philippines right now. The group has since branched out to China, where it operates eight SM Malls.
For the genesis of the chain that has gained a commanding market share, look back to 1958, when Henry Sy opened a small shoe store on Rizal Avenue in downtown Manila. That store, selling locally made and imported shoes, has since evolved, first into department stores, and then, as previously mentioned, into the yet uncharted mall business territory.
Although the business has undergone various incarnations and rebirths, the Sy family is keeping the Shoemart memory alive, thus the famous SM initialism.
In all communities they operate, SM Malls create jobs and livelihood opportunities, and, through various advocacies, promote health and education, as well as ensure food security, thus contributing to a more resilient and shock-proof Philippine economy.
In 2024, SM Investments reported a consolidated net income of P82.6 billion, a 7 percent increase from P77.0 billion in 2023.
Of total net income, banking, which consists of BDO Unibank and China Banking Corp., contributed the largest share at 49 percent. SM Prime, which consists of malls, residential, offices, hotels and convention centers, contributed 26 percent. SM Retail, which consists of groceries, department stores and specialty retail brands contributed 18 percent.
It is unexpected, although not surprising at all, that SM Investments is also into logistics and renewable energy. It owns the 2GO Group, the country’s largest end-to-end multimodal transportation and logistics solutions provider, and the Philippine Geothermal Production Company, a pioneer in geothermal steam field development in Southeast Asia.
It has also invested in legacy brand Goldilocks Bakeshop, now a fast growing bakeshop chain.
Their business performances have enabled SM Investments, BDO Unibank, and Chinabank to make it to Fortune Southeast Asia 500 list for two years in a row. The three firms thus join the list of elite companies from Indonesia, Thailand, Malaysia, Singapore, Vietnam, and Cambodia.
SM Investments and BDO Unibank are also listed in Forbes Magazine’s 2025 roster of world’s 2,000 largest publicly listed firms.
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