SM INVESTMENTS Corp. is consolidating all its retail businesses under one roof, creating an even bigger retailing enterprise with combined sales of P264 billion under SM Retail Inc.
Following the strategy adopted for its property business, SMIC’s board approved the merger of allied retailing businesses into SM Retail, 77.3 percent of which the conglomerate will own after the merger.
“The merger adds greater diversity and a more extensive footprint to SM Retail’s portfolio and is consistent with our goal of simplifying our corporate structure… As a result, SM Retail will be better positioned to address the growing needs of Filipino consumers,” said Harley Sy, SMIC president.
In 2015, SM Retail posted P211.4 billion in sales, up by 7 percent. Net income rose by 17 percent to P6.8 billion.
The combined entity will have 1,927 outlets and 2.4 million square meters of gross floor area across a diverse portfolio of food, household appliances, DIY (do it yourself store), furniture, apparel, footwear, pharmaceuticals/cosmetics and specialty retailing stores.
Related companies folded into SM Retail included Ace Hardware, SM Appliance Center, Homeworld, Our Home, Toy Kingdom, Watsons, Kultura, Baby Company, Sports Station and several other specialty stores. Together, they operate 1,374 outlets and in 2015 delivered total revenues of P53 billion.