SM Retail Revenue Hits 223.6 Billion Pesos as Network Expands Beyond Manila
In this article (7)
SM Retail posted first-half 2026 revenues of 223.6 billion pesos ($3.7 billion), up 5.6 per cent from a year earlier. Regional consumer spending gathered pace across the Philippines.
Net income rose 6.0 per cent to 8.9 billion pesos ($270 million). Same-store sales grew 2.9 per cent across a nationwide network of 4,837 stores.
Food and Speciality Stores Drive Turnover
Food retail generated roughly 60 per cent of total sales across 2,824 points of sale. It rose 6.1 per cent with same-store gains of 3.3 per cent. SM Store, the group’s 79-location department store chain, grew revenue 3.2 per cent. Speciality store sales expanded 5.9 per cent, even after the operator closed a net 73 outlets to trim marginal locations.
The company relies on an asset-light format by leasing space within sister developer SM Prime’s commercial properties. Of the 490 physical stores opened over the past year, 80 per cent sit outside Greater Manila. These target provinces where modern retail still represents less than half of household shopping spend.
Mall Developer Backs Bay Reclamation
SM Prime lifted first-half revenue 5.3 per cent to 71.7 billion pesos ($1.2 billion). The developer operates 90 malls across the Philippines and nine in mainland China. Rental income provided more than 60 per cent of that total. Revenue from leisure facilities, including cinemas and ice-skating rinks, rose by more than 10 per cent during the same period.
Expansion into secondary provinces mirrors retail decentralisation across Southeast Asia, where operators such as Central Group in Thailand and Vincom Retail in Vietnam build commercial centers ahead of rising provincial incomes. Remittances from overseas workers feed directly into these regional retail hubs. They underpin Philippine private consumption at 75 per cent of gross domestic product.
Work continues on Pasay 360, a 360-hectare Manila Bay reclamation joint venture with local authorities. The project will expand the Mall of Asia complex with new commercial, hotel, and residential districts over multiple development phases.
Questions & Answers
Q.Which retail segments drove SM Retail's sales growth in the first half of 2026?
Which retail segments drove SM Retail's sales growth in the first half of 2026?
Food retail and speciality stores significantly contributed to sales. Food retail generated roughly 60 per cent of total sales, growing 6.1 per cent, while speciality store sales expanded by 5.9 per cent.
Q.Where is SM Retail focusing its new store openings outside of Greater Manila?
Where is SM Retail focusing its new store openings outside of Greater Manila?
The company is targeting provinces where modern retail currently accounts for less than half of household shopping spend. 80 per cent of the 490 new stores opened over the past year are in these areas.
Q.How does SM Retail typically manage its store properties?
How does SM Retail typically manage its store properties?
SM Retail primarily uses an asset-light format. It leases space within commercial properties owned by its sister developer, SM Prime, rather than owning all its store locations.
Q.What is SM Prime's role in the Pasay 360 project?
What is SM Prime's role in the Pasay 360 project?
SM Prime is involved in Pasay 360, a 360-hectare Manila Bay reclamation joint venture with local authorities. This project will expand the Mall of Asia complex with new commercial, hotel, and residential districts.
Reader pulse
SM's provincial expansion strategy:
17,812 votes so far