SM Retail is accelerating its push into provincial markets, planning to open about 300 new stores in 2026 as it doubles down on value-driven merchandising amid intensifying competition.
The expansion—entirely outside major urban centers—highlights the group’s confidence in rising consumption beyond Metro Manila and its strategy to capture demand in underserved areas.
Company president Jonathan Ng said the retailer will focus on its core strength of serving a broad range of consumers with the right mix of products at competitive prices. “We need to focus on what we do best—offering a well-curated assortment at the right value,” he said.
Ng emphasized that value and relevance are becoming more critical as competition heats up. The company is refining its product mix and pricing across formats to better align with evolving consumer needs, while expanding in areas with growing purchasing power.
“We continue to go where the consumers are,” he said, pointing to provincial markets as a key growth driver.
The aggressive rollout underscores SM Retail’s bid to deepen its footprint nationwide while sustaining momentum in a more competitive landscape. Ng said strengthening assortment and maintaining strong value propositions will remain central to its strategy.
SM Investments’ retail unit posted solid first-quarter results, supported by higher sales volumes and tighter cost management, according to Timothy Daniels, head of investor relations and sustainability.
Growth was led by the SM Store chain, with increased spending in fashion and children’s categories. Improved cost controls also helped lift margins across the business.
Within the portfolio, Goldilocks was among the top contributors, benefiting from higher demand during the graduation season.
Retail remains one of SM Investments’ three core pillars alongside banking and property, forming an integrated ecosystem that supports recurring revenues.
Daniels said the Philippine retail sector remains underpenetrated, particularly in groceries, where modern formats account for only up to 40 percent of total sales. He noted that rising incomes and shifting consumer preferences continue to expand opportunities, with similar potential seen in non-food retail.
The sector’s growth, he added, positions retail as a key cash flow engine supporting the group’s long-term expansion.
