SM Retail profits from growth spurts and pandemic fashion trends
The return of in-person classes and on-site work stimulated demand for clothes, shoes and other fashion items, allowing the retail arm of SM Investments Corp. (SMIC) to nearly double its net income in the first half.
SM Retail, which operates the department stores under the SM Store brand, saw its net income grow by 91 percent to P7 billion in the first semester. Revenues climbed by 18 percent to P163.7 billion for the period. “The resurgence of fashion has been driven by more energized spending as the economy reopens. To meet this vibrant demand, we ensure that we provide relevant and up-to-date merchandise and constantly innovate to address the Filipino shopper’s ever-changing needs,” SM Store executive vice president for operations and sales support Dhinno Tiu said. The brand’s fashion categories—clothes, shoes, bag, accessories and beauty products—had reached 95 percent of prepandemic sales by the end of the second quarter.
New clothes
SM Retail said the public needed wardrobe upgrades as they go back to working in offices while children “also needed new clothes to catch up with years of growth spurts.”
The reopening of schools also led to more sales of shirts, uniforms, socks, shoes, bags and stationery supplies.
The retail giant observed a change in fashion trends in recent years, noting that its consumers have been buying comfortable lounge garments in the advent of work-from-home arrangements.
“Athleisure,” or clothing for exercising and general use, is also in as people become more active. “People also started to bike to work, first arising from mobility restrictions but extending towards the promotion of one’s health and wellness, which required the appropriate and necessary gear,” the SMIC unit said.
Article continues after this advertisementThe retail company is also promoting sustainable products such as kitchenware made from bamboo, fashion pieces created with recycled materials and beauty products free from harmful chemicals.
Article continues after this advertisementSM Retail and its affiliates added 147 stores in the first half, bringing the total to 3,336.
In the same period, SMIC grew its net income by 27 percent to P25.5 billion, driven by its retail, property and banking segments.
