SM Group to expand operations in rural areas

CEBU, Philippines - The SM Group wants to expand its food retail operations in the country’s south including Cebu as it seeks to get new lands for future developments, a company official said.

SM Hypermarket vice president Arnold Daluz said the firm is looking at developing retail stores in the provincial areas as the “city is already congested”.

In Cebu, the company is considering Minglanilla and other areas in the north and south for its retail store expansion, Daluz said. But he did not say concrete and specific plan on Cebu expansion for this year.

“In terms of expansion, we would really like to go around, we would like to be everywhere in the south but it depends [on the properties],” Daluz told reporters at the sidelines of SM Hypermarket Lapu-Lapu’s inauguration on Thursday.

“We’re looking at the possibility of getting lands or lease lands,” he said.

A hypermarket is a combination of supermarket and department store. The new one in Lapu-Lapu City is the firm’s 43rd hypermarket around the country and is the 3rd in Cebu.

Daluz  said the newly-opened hypermarket was supposed to be present already in the city two years ago but the company had to address construction problems because the location of the store stands in part of a lagoon. A lagoon is a low body of water separated by island from a larger body of water.

“Building was not as easy as that… But [it’s in] just part of a lagoon which can carry a building,” he added.

Daluz also noted Lapu-Lapu City has always been a potential market because of its booming economy and growing population.

SM Hypermarket Lapu-Lapu also has around 33 retail spaces which will open on March 20. The official declined to say the investment cost of the new store which employs around 3,000 workers.

Joy Veloso, Visayas operations vice president of SM Supermalls, said the mall’s tenants are into the businesses of retail, computer, food and accessories.   

In 2014, the net income of SM Prime Holdings Inc grew 13% on the back of higher rental revenues from retail and commercial spaces and real estate sales. (FREEMAN)