SM Group to build 3-5 new hypermarts next year

SM Hypermarket is ramping up its expansion next year with plans to put up three to five hypermarts in and outside Metro Manila.

“We intend to be more active next year. Our objective is to build three to five new stores every year,” said Robert Kwee, executive vice-president of SM Hypermarket.

Kwee said the company is building only two new branches this year - SM Hypermart Rosales, Pangasinan and SM Hypermart Baliaoag, Bulacan.

He did not say where the new branches planned for construction next year would be located. Although one of which would be in Eton Properties Philippines Inc.’s 12-hectare mixed-use project dubbed Centris.

Construction of a hypermart would normally cost between P100 million and P150 million, Kwee said.

The SM currently has a total of 11 hypermarts but this figure will increase to 13 by the end of the year.

Existing branches are located in Bicutan, Clark, Marilao, Mall of Asia, Molino, Muntinlupa, North Edsa, Pasig, Sucat, Taytay, and Valenzuela.

The hypermarket and convenience segments outperform the supermarket and department store segments.

The hypermarket provides a leading competitive edge in the food retail sector, cutting into bottom lines of other outlets while enhancing the choices of consumers. The stores are large, clean, well organized and have vibrant promotion programs. And they attract droves of customers.

The first SM Hypermart was established in the late 1990’s in response to the growing needs of the market for more convenience.

SM Hypermarket has been successful in creating the convenience of a first-rate indoor wet market, food and general merchandise store to provide one-stop shopping convenience for shoppers everywhere

In 2006, Hypermarkets performed beyond expectations. There are now 11 hypermarkets, most of which are still in Metro Manila. New relationships are developing as SM Hypermarkets began to invite fresh food stall concessionaires to operate in the hypermarket’s fresh market section.

Fresh meat, seafood, fruits, and vegetables are sold directly to the customers, who are hooked on the concept of choosing the items they want, at the quantities they prefer, and at the price they can afford.

Kwee said the group is constantly introducing new concepts to enhance the positive shopping experience in the stores. Among which are the chicken rotisserie stall, the bakery stall that sell thousands of freshly baked pan de sal, ensaymadas, and other types of bread daily, and Taste Asia, which offers dampa-style dining.