SM Retail targets growing Gen Z market

MANILA, Philippines — SM Retail Inc., the retail arm of the Sy family’s SM Investments Corp., looks to capture a bigger portion of the growing Gen Z demographic as it strives to reach new consumer markets.

Data from the SM Store, the department store business of SM Retail, showed a 13-percent increase in in-store purchases by young shoppers in 2024.

SM sees the growth as a signal to a shift in consumer behavior and a rising preference for physical retail experiences.

SM Retail executive vice president Jonathan Ng said the company is placing greater emphasis on engaging with young shoppers, noting that the increase in Gen Z customers reflects the growing purchasing power of this demographic.

“While Gen X and millennials still lead in terms of purchasing power, we’re strategically investing in Gen Z as they become an increasingly influential consumer group,” Ng said.

Gen Z, ages 13 to 28 or born between 1997 and 2012, currently makes up 38 percent of the country’s population based on the recent census by the Philippine Statistics Authority.

SM Retail said that it is well-positioned to capitalize on this segment.

“Filipino shoppers, especially Gen Z, are more experiential and tactile in their shopping preferences. At SM Store, we are dedicated to evolving to meet these expectations, investing in modern store designs and enhancing customer service to stay ahead of the curve,” Ng said.

Through strategic partnerships, SM Retail has focused on enhancing the customer experience and creating a more enjoyable in-store environment.

SM Retail said that its focus on in-store discounts, convenience and the ability to quickly own products also aligns well with Gen Z’s preferences.

SM Store also continues to innovate, evolving its merchandise selection, store layouts and overall customer experience to meet the demands of an ever-changing retail landscape.

“Our strategy has always been ‘We’ve got it all for you.’ SM Store offers a broad product range that appeals to different market segments, making it a one-stop shop for all,” Ng said.

SM Retail said that its ongoing growth and ability to engage with different consumer segments reinforce its leadership position within the Philippine retail sector.