InterAksyon.com
The online news portal of TV5
MANILA ? SM Investments Corp is unfazed by the entry of another formidable competitor in Ayala Land Inc in the local retail scene, as the Henry Sy holding firm cited its strong brand and established presence nationwide.
"Competition is good because it keeps us awake. We welcome competition because otherwise we will be sleeping already," said Robert Kwee, president of SM Hypermarket.
Also a mall operator, Ayala Land, through its joint venture with Tantoco-led Rustan's group, is building up its retail business with the FamilyMart convenience store and its own department store brand.
"We believe that by tying up with the right partners, we should be able to compete more effectively,? said Jaime Ysmael, Ayala Land chief financial officer.
The Ayala Land-Rustan's partnership is the latest addition to the growing list of formidable competitors that aim to take away SM's market share in the booming retail scene. Lucio Co-led Puregold Price Club Inc, the country' second biggest grocery operator, is high up on that list.
"No, we don't see any effect on our business," said Kwee on Ayala Land's foray to the retail scene, adding that SM is a big and popular brand in itself with the widest retail network in the country.
In the first nine months, the SM Retail group, inclusive of the department store business, accounted for 25.8 percent of SM Investments' consolidated earnings of P16.1 billion, up 14 percent from P14.2 billion in the same period last year.
The SM Group is also in the business of real estate development, malls, banking, hotels and convention. It has an investment in Atlas Consolidated Mining And Development Corp and has a stake in Belle Corp, which is building an integrated casino complex in Entertainment City.
For now, the SM group has "no plans yet" to go down to the convenience store business, Kwee said.
"I?d rather have the same management effort for one big store than 20 small stores," he said.
The SM Group mostly operates the bigger retail store formats like hypermarkets and supermarkets. It also runs SaveMore stores, a stand-alone store format patterned after a neighborhood grocery, only larger.
Bulk of next year's expansion will focus on the SaveMore stores, accounting for a third of the 30 stores the SM Retail group is planning to roll out, raising its store count to 185 from the projected 155 stores at end-December.
To further expand its business, SM Investments president Harley Sy said the retail group is considering acquisition opportunities, ?but it has to have a fit in our organization.??
?We are always open to opportunities, but so far we will proceed with our own expansion,? Sy, one of three sons of the mall magnate, said.
"It has to be reasonable and affordable. Acquisition is okay but our organic growth is good. For example, a reasonable condominium is priced at P2-3 million. If somebody wants to sell it for P6-8 million, will you buy it? Why acquire when in fact we can build our own," said Kwee.
?
severe weather wichita brian wilson storm chasers david blaine gotye divine mercy
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.