More room for consumer growth in the Philippines: SM

Consumer activity has been consistent in fashion, food and beverages.

SM Investments Corporation has seen more room for growth in the Philippine economy, with consumer growth showing consistency.

Spending on fashion, food and beverages has sustained consumption activity, alongside entertainment and the like, it said in a statement

One factor about consumption activity that is notable is where the consumers come from. Remittances from Overseas Filipino Workers contributed to the consumption activity of the country. Business process outsourcing expansion and improvements from unemployment have also led to consumer confidence. And the younger demographic has also strong spending power.

Aside from retail, logistics has also experienced high growth through 2GO, becoming the largest transportation and logistics provider in the country, and Airspeed, elevating its end-to-end logistics and courier services.

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SM has also experienced this growth in its various assets in energy, real estate and banking.

“Even during the height of the Asian crisis, household consumption in the Philippines has been quite resilient, primarily driving sustained economic growth. We are positive about our retail business, and we continue to be mindful of our customers’ needs as we offer choices that can match the size of their wallets,” Frederic C. DyBuncio, President and CEO of SM Investments, said.

For its mall operations, SM targets expansion in provincial area, with over 80% of new retail stores being located outside of Metro Manila