SM to expand Savemore network

1 min readUpdated May 28, 2025Mar 11, 20152:00 AM

supermarket cabiao nueva ecija by redbelt d6no28o

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The Philippines’ SM Retail plans to open 20 more Savemore supermarkets this year after reaching the 100 threshold last year.

Savemore is a neighbourhood grocer format, typically about 1300 sqm and located in areas where there is little organised retail industry in place. In such neighbourhoods, most Filipinos shop in sari sari stores – small businesses selling groceries in single unit volumes, everything from shampoo to soft drinks, run from the front of family homes.

Besides groceries, Savemore stores offer services such as Western Union, bill payments and Watsons pharmacy concessions.

SM Retail says it will invest P1 billion (US$22.7 million) this year in building new Savemores.

SM Supermarkets president Joey C. Mendoza told the Philippine Star that SM Group opened 20 Savemore stores last year as well.

“Our Savemore is expanding aggressively. We’re now over 100 stores so that’s good. And we’re expanding our reach because of the positive reception,” he said.

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What this means

SM Retail's aggressive Savemore expansion, replicating last year's 20-store growth, signals a shrewd play for market dominance beyond traditional mall formats. By targeting underserved neighbourhoods with 1300 sqm stores, the company effectively formalises the grocery sector, offering convenience and integrated services like Watsons concessions. This approach, unlike Tiffany & Co.'s luxury cafe debut in Singapore, focuses on volume and essential needs, directly challenging the informal sari-sari store network. The P1 billion investment underlines commitment to a proven, locally tailored strategy. The key will be monitoring how rapidly new Savemores achieve profitability in these nascent organised retail territories, especially by store count next year.

Aiko Tanaka · Retail News Asia newsroom

Questions & Answers

How many Savemore supermarkets does SM Retail plan to open this year?

SM Retail intends to open 20 more Savemore supermarkets this year. This expansion follows the company reaching the 100-store milestone for its neighbourhood grocer format last year, indicating continued growth.

What is the typical size of a Savemore store and where are they usually located?

A Savemore store is typically about 1300 square metres in size. These supermarkets are generally situated in areas where there is currently little organised retail industry, targeting underserved neighbourhoods.

What services are offered in Savemore stores in addition to groceries?

Besides offering groceries, Savemore stores provide additional services for customers. These include facilities for Western Union transactions, bill payments, and Watsons pharmacy concessions within the premises.

How much money will SM Retail invest in building new Savemores this year?

SM Retail plans to invest P1 billion this year specifically for the construction of new Savemore supermarkets. This investment is part of their aggressive expansion strategy, driven by positive customer reception.

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