SM Investments Corp. (SMIC) expects its retail business to maintain its growth momentum in the second half as resilient consumer spending, easing inflation, and improving margins support demand.
Retail operations accounted for about 15 percent of SMIC’s total earnings mix in the first half, with net income rising 5.3 percent despite a challenging operating environment and higher fuel costs.
Franklin Gomez, SMIC executive vice president, said the performance reflected broad-based gains across food and non-food categories, as well as different retail formats.
“Retail continues to be very steady because we really try to make sure that we offer good value to a very wide range of consumers. And that is always in the essence of our proposition,” Gomez said.
Importantly, the growth came alongside wider margins, suggesting SMIC was not simply buying sales at the expense of profitability. Gains were seen across both discretionary and non-discretionary segments.
Gomez said the broader economic picture is also becoming more supportive, with inflation easing while household spending continues to underpin activity.
“The first half has been very tough,” he said, but noted that seasonal spending could give the business a lift in the second half.
“So far the macro is showing pretty good signs where our economy is there, we see inflation coming down three months in a row. Consumer spending is holding up,” Gomez said.
For SMIC, the breadth of its portfolio remains another buffer. Stronger businesses can help offset weaker segments when consumer demand or operating costs come under pressure.
The retail outlook, meanwhile, remains anchored on value. With consumers still watching their wallets, SMIC’s wide reach across income segments and product categories could help sustain traffic and spending.
Gomez said first-half retail growth remains a reasonable guide for the rest of the year, with seasonal demand providing another potential tailwind.
